Food for thought: I was reading some studies yesterday about day traders and the strong correlation between # of trades and amount of money earned. Basically, the more trades someone takes the less money they made at the end of the year on average. I think it has to do with experience. The more experience you have the less trades you take because a) you see more warning signs to stay out of trades and b) you generally use higher timeframes which give out less signals to begin with.
Also: Remember to always be respectful of your fellow PipHutters. It is about the only rule I have here besides no spamming. Everyone is entitled to their opinions and comments.
Daily Outlook: We've had two bearish days now since the price hit a monthly high at 1.2460 Monday morning. Not quite enough yet to call the end of the bullish retracement but the pair is currently completing a head and shoulders that, if completed, opens up a re-challenge of 1.19. Remember - a head and shoulders pattern has to be completed before it is valid. The neckline is 1.2240 and ideally we'd see another failure below 1.2340 to define the right shoulder a bit better.
Take a look at the forex calendar before you trade today - there is enough news there to fill an analyst's whole week.
Trading Idea: Primary trade is a short on a sustained break below 1.2240 after the right shoulder completes with short targets at 1.2215, 1.2190, 1.2160, 1.2130 and 1.2100 for 140 pips profit.
A more aggressive short would be in the vicinity of 1.2340 (right shoulder) with targets down to the neckline at 1.2250 for 90 pips profit.
Also keep an eye on the candlestick alerts - the 1h candles have been very profitable this week. Happy pipping today!