Daily Outlook: We took some solid profit off our long from 1.4115 yesterday, though we got nervous at first as the pair tanked after we established the position. Support and our SL held and the pair then got 100+ into the profit though we only captured a portion of that, and our last lot hit the SL after we moved the SL to break even at 4115.
Price is currently flirting with support around 4150 and we are still bullish around this level with good candlestick confirmation on the smaller timeframe charts, but a break below this level opens up a re-challenge of 1.4100 (strong rising trend support) and 1.4020.
Trading Idea: We aren’t as crazy about the setups today as the market appears to be searching for a direction at the moment (and we get most excited when the direction is clear) so we will keep the positions small on any trades we open. Our primary inclination is bullish at the moment so we will look so we will look to get long on a break above sustained break above 4200 with targets at 4220, 4245, 4275 and 4300 for 100 pips potential.
We are also looking for a short on a sustained break below 4130 with targets at 4110, 4085, 4055 and 4025, though we will watch closely around 4100 for signs of a reversal. On a strong candlestick signal we will stop-and-reverse to the upside with the targets from the primary trade.
