That is what forex is about: recognizing profitable trade setups and acting on them, while avoiding setups that have a low long-term probability of success (even if you might win in the short-term). Also, in case anyone has been counting if you have been following PipHut's signals closely this year then you've easily picked up thousands of pips - we've been selling since mid-December.
Daily Outlook: Obviously I'm bearish. While technically we know that there was a bearish descending triangle that forecasted the bearish drop, fundamentally driving the drop we had the report of lower-than-expected job growth in Americ. This is a great example, by the way, of how trading the news is more complicated you think at first glance. While taken in a vacuum the numbers were positive - 450k jobs were create - muddying that number was the fact that 400k of those jobs are temporary census workers. So in the private sector the US created 50k jobs which, again, in a vacuum is a good thing relative to past job numbers but were low compared to market expectations. The result was a buying of the USD as investors looked to move toward a relatively safe currency and shed the risk that the Eurozone represents at the moment.
Technically, the pair just broken the consolidation triangle to the downside and has fallen over 200 pips in the past 24 hours, hitting fresh lows below 1.19. We've been in a strong, strong downtrend now for 6 months and the long-term, medium-term and short-term outlooks are all bearish both technically and fundamentally. I will continue to look to sell on rallies or on breaks.
Trading Idea: Primary trade will be to look for shorts below 1.2080. Short targets at 1.2050, 1.2020, 1.1990 and 1.1960 for 120 pips profit. For a more aggressive secondary trade I will look for pools of consolidation near support levels (on the 1h chart) and sell breaks. If 1.2080 is broken to the upside we could likely see a re-challenge of 1.2180.