Daily Outlook: It was another solid trading day yesterday, booking another good day of profits off of the big support break yesterday. We were going to leave a lot open for another downside stab through 4350 but the 09:00 bullish doji was enough for us to take profit on our last remaining position. For today we are looking for another downside stab as another rising support level was broken:
As we mentioned in the comments about 20 minutes ago we established a short position near 4300 on the latest stab down (a little bit lower than we should have gotten in at but we feel there is still good downward potential). The major risk to the trade are the rate decisions coming out at 12:00 (GBP) and 12:45 (Euro), followed by the US ADP Nonfarm data at 13:15 and Initial Jobless Claims at 13:30, and we will look to close our open positions 11:30 UTC (or at least lock in profit)
Trading Idea: We are currently short from 1.4300 with targets at 4275, 4250, 4225 and 4200 (thanks for the correction @sandeep).
We don’t have a secondary trade today because we do not believe there is enough to time to get in another trade before the news events start rolling out, and those releases will inevitably change the technical landscape of the charts.
