Daily Outlook: Another good day Hutters as our long from 3860 paid off for another 90 pips. For anyone counting that is +260 pips in three days off three trades. Not too shabby. And while the pairs are definitely overbought on the lower timeframe charts, there is still plenty of room for bulls to stampeded a little more:
1.40 is the obvious target, and one we have been feeling was inevitable for a few weeks after key resistance was broken Feb 24th. There is a bearish RSI divergence on the daily charts, but divergences can last for days and weeks before correcting (probably why we don't trade them!). To sum up our feelings for the day: bulls have the upper hand, there is still room to run without a dip but it is Friday. No need to push it. Remember - bears make money, bulls make money and hogs get slaughtered.
The reason for the rise yesterday, if you are interested in fundamentals, was a statement by the ECB's Trichet stating that we could see a rate hike as early as April. Of course if you are a technical trader then all you needed to know is that the charts were bullish and there are now pips in your pocket. Isn't life simpler that way? :)
By the way, new video for Tuesday's trade taken live at the time of the trade showing how CandlePRO was used in selecting the entry, TP and SL points (if you watch it on youtube you can turn up the resolution and see the charts a little better):
Trading Idea: We are sitting out this Friday, but we see the charts as bullish still with 1.3930 as short term support and 1.3900 as key support - bullish above, short term bearish below. 1.40, 1.4025 and 1.4090 are the next resistance levels/long targets.