Primary trade idea was to look for shorts in the 1.2440 are yesterday and the pair just nicked it as it kicked up 4 solid sell candles (check the candlestick alerts) on the 1h chart and a handful more on the 30m. I rode two shorts down for +370 pips (combined) and closed a few other shorts along the way two.
My secondary trade was also triggered - a break of rising trend support. If you entered on the break around 1.2330 that yielded another 200+ pips.
Daily Outlook: So why does the Euro keep falling? In short it appears the heavy traders are already pricing in a default in the Euro-zone. Whether it is Greek or Spain, who knows. The pair has fallen over 1100+ pips this month already and has shown very few signs of letting up. The pair has fallen 3000 pips since December. Great news for me, as I've been selling all the way down.
We are in yet another bearish channel and I will continue to look to sell on rallies and look for opportunities to sell in general.
We have the FOMC meeting minutes tomorrow, and some inflation data. I don't expect any surprises. If anything the inflation data could be better than expected on weak oil and the strong dollar. Check the forex calendar for more details.
Trading Idea: Primary trade opportunity is in the 1.2330-1.2300 resistance zone with short targets (from 1.2300) at 1.2275, 1.2245, 1.2215, 1.2190 for 110 pips profit. If 1.2330 is broken to the upside look for a re-challenge of channel resitance currently at 1.2400.
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