Trading Idea: Primary trade is the same as it has been all week – looking for a short around 1.3080 on a strong CP confirmation. 3080 is intraday resistance and the 38.2% retracement of the Jan 4-9 drop. 1.3180 is the key pivot that should hold any rallies. Targets at 1.3050, 3020, 2980 and 2950 for 130 pips profit.
If the pair starts to turn before hitting 1.3080 then a break below 1.2915 would confirm the upward consolidating has ended and open up 1.2890, 2860 and 1.28 over the coming days. Obviously this is a riskier trade as you are getting a worse price, but you do get the added benefit of selling in the direction of the price movement (e.g. the pair has already shown that bears have strength).
Finally the riskiest trade is a long near 1.2930 if you expect the pair to continue its bullish consolidation upward. On the hourly charts if you combine the lows of Jan 10 @ 1:00a GMT and Jan 11 @ 15:00a GMT then you can clearly see the rising trend support. Scalpers may find this trade yields a bounce at least a few times, but as more conservative traders we will pass on this one.
If the pair starts to turn before hitting 1.3080 then a break below 1.2915 would confirm the upward consolidating has ended and open up 1.2890, 2860 and 1.28 over the coming days. Obviously this is a riskier trade as you are getting a worse price, but you do get the added benefit of selling in the direction of the price movement (e.g. the pair has already shown that bears have strength).
Finally the riskiest trade is a long near 1.2930 if you expect the pair to continue its bullish consolidation upward. On the hourly charts if you combine the lows of Jan 10 @ 1:00a GMT and Jan 11 @ 15:00a GMT then you can clearly see the rising trend support. Scalpers may find this trade yields a bounce at least a few times, but as more conservative traders we will pass on this one.
