Daily Outlook: To sum it up the pair was slightly bullish yesterday but wasn't able to move in any direction with any authority, and has more or less just drifted since failing at 1.3500. As such I am looking to trade the tight range between 1.3500-1.3420. A double-top at 1.3500 (i.e. a second failure) would be a very bearish signal that I would look to sell, while a second bounce (i.e. a double-bottom) at 1.3420 would be a very bullish signal that I would look to buy. I will also be monitoring the breakout trades with a sustained break of 1.3500 leading me to buy and a sustained break of 1.3420 leading me to sell.
No big USD or EUR news today, though there is a Pound rate announcement and of course we will be listening for any Greek news. Read more at the forex calendar here.
Trading Idea: Primary trades are short on a failure of 1.3500 (a double-top; short targets at 1.3475, 1.3500 and 1.3420) and a long on a bounce off of 1.3420 (a double-bottom; long targets at 1.3445, 1.3470 and 1.3500). My secondary trades will be to sell a sustained break of 1.3420 and buy a sustained break of 1.3500 (breakout trades).