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.

(click to enlarge)

Quick Links:

Sign up for free forex signals via email here
FAQ on these signals

Forex Candlestick Alerts

Forex Income Calculator

Forex Market Hours

Forex Forums

Source: Forex Signals - EUR/USD Gap Trade
Forex signals from: PipHut.com