4:24a GMT - Candlestick alerts gave us a solid entry yesterday on a triple-bearish candlestick signal on the 30m - bearish doji at 12:30, shooting star at 13:00 and hanging man at 13:30. It was below our resistance level but the triple signal was too tempting for many of you. I would have entered short as well - despite the thin markets - on the second signal except for the fact that the price didn't get high enough to alert me :).
In general markets continue to thin and traders keep dropping off to take time off for the holidays. I know many of you have already wished me a happy holidays and a see you next year! FYI to all other traders still present I will continue publishing signals through the holidays except for Christmas Eve (24th), Christmas Day (25th), New Year's Eve and New Year's Day.
Daily Outlook: Bearish action continued yesterday though we did see a second bounce off support at 1.4260. In the short-term I am bearish below 1.4420, but we have a confluence of resistance around the 1.4350 area that I will be watching closely for shorting opportunities. We have the sinking trend line from 12/11-12/16 highs (top blue trend). Second we have the shorter-term resistance connecting the 12/18-12/21 highs. Third we have the 38.2% retracement from the 12/16-12/18 at 1.4390. That leaves a zone of between 1.4355-1.4385 that I will be looking for good shorting signals.
Trading Idea: Looking for shorting opportunities in 1.4355-1.4385 resistance zone. From 1.4385 short targets are 1.4350, 1.4320, 1.4290. If 1.4390 is broken to the upside look for a re-challenge of 1.4420 and 1.4460. Also if price continues to drop without rising first a break of 1.4250 would open the way for a quick challenge of 1.4210.
Reminder that markets are thin near the holidays: use smart money management and I recommend a more conservative trading style! There is also a news event at 13:30 that could make markets move more than it usually would. Caution advised!
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