Daily Outlook: The week opened with another gap, but this time a much smaller one (~30 pips) so I am ignoring it for the most part. The pair has a lot of bearish momentum right now, dropping over 230+ pips last week and completely closing the massive gap that started out last week. I will be looking for rallies to sell into but would like to see the pair rise at least to the 1.3530 resistance range to cool off oversold levels.
Also be aware the Bernanke is speaking around 13:00 GMT today and this could move markets.
Trading Idea: Primary strategy is to sell in the range of 1.3530 resistance (the 38.2.8% retracement of the Apr 8 low to Apr 12 high and former resistance). From 1.3530 my short targets are 1.3500, 1.3475, 1.3450 and 1.3420 (for 110+ pips profit). I do expect to see a bounce off of 1.3445 as that is the 61.8 fibonacci retracement of 4/8-4/12.
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