Daily Outlook: We played it conservative yesterday setting an entry of 1.3695 on our primary setup - missing our entry by just a few pips and watching 140+ pips slip away. The missed opportunity was softened, however, by our secondary more aggressive setup which was long on a sustained break of 3600 that led to us putting +50 pips per lot into our pip horde. As we talked about yesterday following the rules of your system is vital to long term trading success - not trying to chase every single pip and setup you see.
After the rise and fall yesterday we are left with a sloppy looking ascending triangle on the charts - we say sloppy because the top resistance line is sloping downward when ideally the top line is a horizontal resistance line AND ideally the ascending triangle occurs after an uptrend, not at the bottom of a 500+ week drop.
Trading Idea: To accommodate these variations in the ascending triangle we will be looking for trades in both directions - long on a sustained break above 1.3700 with targets at 3725, 3750, 3780 and 3810 for 110 pips profit or short on a sustained break below 1.3600 with targets at 3570, 3540, 3510 and 3480 for 120 pips potential.
On the long break we will eventually look for a short around 3775 with targets back down to 3700 for 75 pips potential.