Forex Signals - EUR/USD Approaching Trend Resistance

By IBTimes Staff Reporter | January 28 2010 2:37 AM

Daily Outlook: 6:27a GMT - Pair did little to nothing for much of the day yesterday before making a second break under 1.4020 and triggering my secondary trade (short @ 1.4020) which netted some nice pips only a couple hours later. Nothing in the technical outlook of the pair has changed: weekly charts still show bearish, daily charts show bearish (though if current daily closed we would have a shooting star) after making several flag patterns and making bearish breakouts on all supports.

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Trading Idea: With this bearish trend in mind I will continue to look for selling opportunities into this bearish trend. Easier to swim with the currents than against them :). I will initially look for more shorting opportunities in the 1.4070-1.4100 zone (1.4070 is an area of recent trend resistance and 1.4100 has been resistance for a couple days now) with targets at 1.4035, 1.4000 and 1.3960.

By the way, in these strong trends the past few days I have been posting new resistance levels to look for selling opportunities in the comments/forum section so keep your eyes open!

(click to enlarge)