5:38a GMT - Good morning piphutters! Another week winding down, more pips in our pockets and another beautiful day to be alive! Trend resistance connecting the highs of 1/14 and 2/3 held strong yesterday, stronger than I thought it would, sending the pair dropping 200 pips after flirting with the resistance for hours and days. This downward puncture of the support gave us a nice pop that translated into pips in your pocket - whether you were still holding the short from yesterday's false breakout or opened a new one.
Daily Outlook: With that trend resistance holding firm more strong resistance at 1.3850 and another challenge of 1.3575 looming I am bearish on the pair for the day. I know some are concerned we could see a more extended correction (at least similar to what we saw from late December to mid-January if you look at a daily chart) and, while it is still possible, as a technical trader I only trade based of what the chart is telling me. NOT what I think might happen, what I think could happen or what I worry will happen. And everything on the chart at the moment is bearish :).
Trading Idea: Going into the weekend I'm always more conservative, especially this weekend with any details of the Greece bailout might produce some whipsaw action come monday. There fore the primary trade will be a short in the 1.3800 resistance zone with short targets at 1.3760, 1.3730 and 1.3700. Secondary trade is to short a break of 1.3570 support. Another possible trade for more risky traders would be a short near the falling trend resistance line (lower trend resistance on chart below).