Recap: It's about time our trades finally broke this month! We were just talking yesterday about the importance of sticking with your system and not jumping into trades outside of your system out of boredom (leads to losses and frustration) - I guess patience DOES pay :).
Our short was triggered on the 12:42 support break yesterday at 1.2336. That trade is currently 60 pips in the profit. This is right at the support line we have been watching for weeks so we will close here.
This support line is key as a sustained break below could signal a return to the 1.2050 support of late July. This scenario became more likely today as bulls failed to make a new high above 1.2430, signalling that bulls may be running out of steam for the time being.
Today's Important News Events:
|08:30||GBP Bank of England Minutes|
|08:30||GBP Jobless Claims Change (JUL)||6.0K||1.0K|
|12:30||USD Consumer Price Index (YoY) (JUL)||1.6%||1.7%|
|12:30||USD Consumer Price Index Ex Food & Energy (YoY) (JUL)||2.2%||2.2%|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Trading Idea: We will wait out any bounce that occurs at this support and look for a new rising support to form and get short off of that support break with targets at 80 pips. PRO support break emails will automatically be sent out if this scenario develops and we take the trade.