Daily Outlook: Good early morning piphutters, we've got a big day ahead of us. Markets have been in turmoil for the past several
years months weeks days and we are anxious to see how traders react to the uncertain footing of the financial world come Monday morning. As a quick overview of the markets, here is a list of things investors fear: euro slowly collapsing, euro quickly collapsing, US defaulting on its debt, China starting a financial war, a return to the gold standard, stocks, bonds and their own shadow.
Luckily, this is forex and in the most volatile markets we have the ability to put pips in our pockets. Today's chart:
Hourly charts have been a bit choppy without a clear trend but if you back out to the daily charts you can see we are nearing the top of a bullish consolidation channel. This lends some credibility to a downward thrust today, especially as we stay under 1.4510 which is the recent high.
Trading Idea: We are looking to get short on a rally near 1.4500 with targets at 1.4475, 4450, 4420 and 4390, and we will be watching for candlestick signals in the 4450-4500 resistance band to get short on.
We will also look to get short on a sustained break below 1.4350 with targets at 1.4325, 4300, 4270 and 4240 for 110 pips profit.
There are opportunities for aggressive longs as we stay on top of the most recent rising trend support (blue line), which is currently around 4375, with good smaller timeframe candlestick confirmation (15m and 30m)