4:04a GMT - Shooting stars led the way yesterday with a great one occurring right before our big drop on the 10:00 gmt candle (1h, did you see it on the candlestick alert system?) It occurred a bit low but the trade was valid for a few reasons: 1) it was higher than the previous 14 candles, lending credibility to it, 2) the tip of it just touched our 1.3650 resistance which has been on the charts for days now, and 3) 1.3700 offered a great resistance level to hide a stop-loss behind. The best stop-losses are such that if it is reached then the technical picture of the pair changes. With 1.3700 if it was breached I would no longer be bearish on the pair. Luckily the large stop loss was more than made up for with the massive 200 pip drop and though I didn't capture all of that I captured enough ;).
Daily Outlook: We are in a bit of a range right now, between 1.3700 and 1.3450 and a break of either level will give us some indication of the short-term direction of the pair. We are in longer-term downtrend, for certain, but the double-dojis on the weekly chart give me enough reason to respect the 1.3450 support for now. A good break of this level would invalidate those dojis, however, and open up a run at 1.3380 and 1.3300.
Trading Idea: First selling area is in short-term key resistance of 1.3580 which held yesterday's eventual rally and is also the 61.8% resistance of the big drop. I will look for short signals in this area with targets at 1.3555, 1.3520 and 1.3480.