3:47a GMT - I didn't trade yesterday due to US banks being closed and its a good thing - I did keep an eye on the markets and watching the price go nowhere was about as exciting as watching paint dry. I shouldn't say it went nowhere however - we did see some more bearish consolidation happen as bulls continued to push the pair upward after the initial bounce off of rising trend support.

Daily Outlook: Given the overall downward trend since early December, the fact that upward movement since 12/22 appears to be a bearish consolidation pattern on the dailies and that at the end of last week we saw a bear charge to support I will look for opportunities to sell rallies on the day. My preferred selling locations would be near resistance with candlestick confirmation and we have a resistance zone approaching between 1.4435 and 1.4425 (38.2% retracement from Jan 13 drop).

Trading Idea: Looking to short rallies to resistance in the 1.4435-1.4425 zone. Targets at 1.4400, 1.4370 and 1.4335.

(click to enlarge)

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