Daily Outlook: Markets having been treading water for the latter part of last week after some major bearish movements and it seems as if there is a bit of a sinking feeling among traders and analysts these days that the economies and banks of the world won't be able to weather the next financial storm for long. To us currency traders whether this is true or not doesn't really matter - we can easily short or long in either direction and profit whether markets go up or down.
Trading Idea: To take advantage of this sinking feeling our primary trade is a short on a rally to 3530-3550 resistance zone with candlepro confirmation and targets (from 3530)at 3505, 3480, 3450 and 3420 for 110 pips potential.
We are also looking for an aggressive short on a sustained break below 3380 with targets at 3360 (tight), 3335, 3305 and 3280 for 100 pips potential.
Advanced: Finally if we see the aggressive short activated above we will look for a new aggressive resistance line to develop that we can establish a long on a sustained break above. Because this line has yet to develop (and may not) we have marked this setup as advanced and aggressive.