Technical Overview: The week started with a nice gap up. We believe that the market will close this gap and we see this gap as an opportunity for SHORT positions. As you can see on the daily chart, the pair is moving within the channel and we believe it will go down toward the lower band. Therefore, our short term target is at 1.386.

Trading Idea: Best levels to enter SHORT positions are anywhere between 1.395 and 1.397. First target is closing the gap at 1.39 and second target is the lower band of the channel at 1.386. A break above 1.401 will be a signal to exit short positions. Only a break above 1.4035 will be a long signal.

Forex Trading tips powered by SignalTrader