Daily Outlook: The weekly candle for last week has a nice long wick, which looks bullish at a glance, but the body is a bit too big for a hammer. Coupled with that is the fact that we opened the trading this Sunday with a bullish gap (the opening price was almost 60 pips above Friday's closing price). In the short term I see Friday's high (and this morning's low) as the key support level to watch: a break to the downside could open up a re-challenge of 1.3350 and 1.3260 while a bounce to the upside opens a re-challenge of 1.3475 and 1.3560. The blue lines on today's charts are the key support and resistance levels that I am watching and looking to trade off of.
No big news for the day though there are a few various announcements throughout the day. Read the forex calendar for more details on those.
Trading Idea: Above 1.3420 I prefer longs with targets at 1.3450, 1.3480, 1.3510 and 1.354. Below 1.3420 I prefer shorts with targets at 1.3390, 1.3360, 1.3330 and 1.3300. Don't forget to use the candlestick alerts near the blue resistance lines to help you find trading opportunities.