Daily Outlook: Welcome back PipHutters! Thin holiday / end-of-year markets out there as prices have basically been consolidating for the past several days. Many banks will re-open today around the world so we could finally see some movement and volume today though we guess that between 50-70% of traders are done for the year and will pick up again in 2012. That is not a scientific guess - just our experience.

width=585

Trading Idea: For traders looking to brave it today we are tracking a rising trend support and a falling trend resistance (blue lines) that are converging together to form a giant pennant consolidation pattern. The preferred trade out of this setup is a short and we will look to sell on a downside break of the rising support level (PRO members will receive email alert if subscribed) with targets at 20/20/20/20 pips for 80 pips potential. Keeping it tight to reflect the think markets.

That is the only trade we are looking for on the EU today, though of course aggressive traders can look to take longs off of rising trend bounces or shorts off of falling resistance bounces.