the piercing pattern at the 1.0800 support accompanied by some trendlines i have made visible convince me to go long. moreover there is no major report regarding the pair coming out until thursday so fundamentals are unlikely to interfere. my stop is 10-20 pips below the low of the pattern. the target is at 1.103 (the most recent high). a trendline can be formed using 1.1275 and 1.045 that might hinder performance but in my experience such steep trendlines often lose their value. another major trendline is formed using the 2009 high and 1.275 (this years high) which poses a greater target at around 1.1100. if the price surpasses the 1.103 level then my next target would be 1.1100.
I fail to understand your bullish piercing line pattern. Isn't it identified by price opening lower making a new low and then closing the day higher? The 2nd arrow from right shows a higher low than previous day. The first arrow from right isn't much of a convincing pattern either, it just shows a bullish sentiment but that's about it. Also tomorrow the US releases its core retail sales which does tend to push prices around.
what you're talking about would be a bullish engulfing pattern. the piercing pattern is something that doesn't end up closing above the last day's close. and since forex is a 24 hour market, it is usually a good idea to ignore the open close requirement of candlestick patterns as the open close is usually the same in forex. i agree that there isnt a huge upside potential here. but i believe the short term sentiment is bullish.