Daily Outlook: Great pips yesterday as our long hit all targets for 100 pips within an hour of the daily signal being posted, and then a great combination of CP signals around 4180 (our primary trade!) triggered a short that hit all targets and then some for 100+ pips as well.
The pair has been in a clear downtrend for all of April, indicated by the clear progression of lower highs and lower lows since August 29th. Yesterday's short-squeeze rally was preceded by a sustained break of the falling trend resistance that we were tracking yesterday (the secondary trade that we had entered at the time of signal) for 170 pips. That rally led us to the 1.4180 zone where we were looking for our primary trade and we were nicely rewarded with no less than three CandlePRO signals to help us into the short:
Trading Idea: Today we are looking for more of the same as we the bearish trend looks set to continue. We are switching our primary to a breakout trade of the flag pattern that is forming on the 1h charts: short on a sustained break of 1h rising trend support (blue line on chart above and the 'flag' of the 'flag pattern'), currently at 1.40, with targets at 1.3975, 3950, 3920 and 3890 for 110 pips potential.
Our secondary setup is a short on a rally to anywhere around 1.4150 resistance zone with good CandlePRO confirmation and targets at 4125, 4100, 4070 and 4040 for another 100 pips potential.
Happy and Safe Pipping Today. Remember: the trend is your friend!