Recap: Good week last week with several hundred pips in the bag. BIG 120+ pip gap to open the week on news that a concrete aid package had been approved for Greece. Makes me wish I had left one of my longs open but I rarely go against the trade plan.
Daily Outlook: The big question is will this rally hold? Well keep a close eye on the details of the aid package as they are digested by smart money but technically speaking this rally has legs. That strong falling trend resistance we've been hiding under since late December of last year was smashed in this gap trade. It would be risky to buy close to this level though (not very good risk/reward ratios) so I will look for dip to buy on.
Trading Idea: Primary trade is to look for a dip in the 1.3530 range with targets at 1.3560, 1.3590 and 1.3620. For aggressive traders a much tigher trade is in the region of 1.3600, though I wouldn't go near that without a good looking reason. Above us 1.3730 and 1.3815 loom as longer-term targets if this rally sticks.