5:14a GMT - First a quick update: sorry if you didn't get the forex signal via email on time yesterday! A little human error there caused the email to go out about 12 hours later than normal. Thanks to Priya for bringing it to my attention!
The pair never rose back up yesterday and instead consolidated in a fairly tight range between 1.4110-1.4050 (with a false breakout to the bottom somewhere in there. For those of you that were monitoring the comments I did post a new resistance at 1.4110 which offered some good candlestick entries on the 1h charts for some pips on the day.
Daily Outlook: The pair has done nothing to shake its bearish technical picture. Quite the opposite actually as the pair is currently in a bearish wedge pattern. The top resistance of the wedge can be seen by connecting the highs of 1/14, 1/19 and 1/26. The support on the wedge is 1.4128 (1/21 low). Given this extremely technical picture I will continue the strategy of fading (selling) rallies. I do not trade the news but I do try and stay out of the market near major news releases as the thin markets can kill your stop-loss. We have a couple big news events tomorrow to heed: US New Home Sales at 15:30 GMT, US interest rate decision at 19:15 GMT and the German CPI. For more info check out the forex calendar here.
Trading Idea: Primary trade is to look to sell under 1.4140 as this should cap any false breakouts. From 1.4140 short targets are 1.4110, 1.4070 and 1.4040. As a secondary trade I will also look for selling opportunities on a sustained break of the wedge support at 1.4020.
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