5:14a GMT - Bears continued their vicious attack on the EUR/USD markets yesterday dropping another 150+ pips on the day. For anyone keeping score thats more than a 600 pip drop in less than 2 weeks every since we saw that nice shooting star on the daily charts on Dec 3. For our part it has been hard to get a decent entry position in these thin markets as bears have been able to push down prices before we get close to our entry positions! But that is ok - I'm always happier to not take a trade than to take a trade I'm nervous about.
Daily Outlook: Obviously we have a bearish short-term outlook on the pair and we still have some room to work with before we hit daily support around 1.4485/1.4465. You can see on the 4h chart below that over the past few days we've seen a repeating pattern of a big bearish drop, about a 16 or so hours of consolidation and then another bearish drop - basically a repeating bearish flag-pattern on the charts.
Trading Idea: I'll look to profit off of this repeating pattern by getting in on a short around the 1.4580-1.4600 resistance zone (50% and 61.8% fibs) or on a sustained break of the bottom rising trend support. Short targets from 1.4600 are 1.4570, 1.4540, 1.4505 and 1.4585.
P.S. I've been bad about getting back to emails lately - sorry. With the email server going down all my spare time has been about getting that up and going again. As things clear up I'll get back on top of the inbox :).