3:41a GMT - Is it 2010 yet? In these thin markets and with most traders taking the week off (it's been quiet in here!) the price staggered back and forth, establishing both a new high and new low on the day. I entered no trade yesterday as both support and resistance were broken with no good signals to enter in either direction.

Daily Outlook: The most interesting thing to happen yesterday was the bearish shooting star that appeared on the daily chart, just piercing the 23.6% retracement resistance of the december high-low fibonacci (daily chart shown below with candlestick circled). That daily signal is enough for me to be bearish on the day and to look for rallies to sell into.

Daily Chart with Shooting Star CircledForex

Trading Idea: I'll give the pair some room to breath in these thin and volatile markets and look for a rally to the 61.8% retracement to 1.4400. Short targets preferred at 1.4370, 1.4340, 1.4305 and 1.4275.

1-hour Chart

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