4:48a GMT - We've got some exciting stuff coming to PipHut this month! Updates to the candlestick alerts system, finally getting around to updating the bank holidays on the forex hours tool, trading videos and more! I'm looking to roll most of this stuff out by March 1st, so keep your eyes open :). No trades from yesterday's signal as the pair just kept dropping and never rose enough to give us an entry signal. A new low was made at 1.3535, further confirming our bearish bias and the Euro is sitting at 10-month lows at the moment against the greenback.
Daily Outlook: As we sit right now the pair has been capped by a bearish trendline on the daily, 4-hour and hourly charts since mid-January (take a look at the chart below - see that nice downward slope and the bottom blue trend line? That is why we have been selling for all of 2010 so far!). The pair is currently, as I write this, flirting with resistance at 1.3650 - my first level of resistance. I am actively watching for a candlestick confirmation in this area to short off of though my preferred shorting zone will be where at the trend resistance, currently around 1.3690.
Trading Idea: Primary trade is a short in the area of 1.3690 with targets at 1.3655, 1.3620 and 1.3590. Secondary trade is a short in the resistance area of 1.3650, though I am more cautious in this area and will require a more stringent confirmation (via candlesticks).