6:42a GMT - When I wrote in yesterday's signal that the bears had circled wagons and looked to be in firm control I still thought the bulls would be able to muster a little bit of a fight. Turns out the bulls played the role of punching bag yesterday as bears continued the downward pressure, smashing through 1.4775 support. Price action never got to yesterday's signal entry, but there were candlesticks worth entering on all major timeframe charts that captured some nice pips. On a side note - this is why I only trade with me trend direction on the day. Anyone jumping at bullish signals more than likely got punished for doing so. If you go with the trend you can get punished, but usually the punishments are not as harsh.

Daily Outlook: With bulls showing little strength and strong daily support broken signals point toward more EURUSD losses and I will look for shorting opportunities. My preferred shorting zone would be 1.4775 (resistance and a 23.6% fibonacci retracement) as that would offer the best reward/risk ratio, but I will also look for shorter-frame shorts on candlestick signals with very tight stops as bears appear to have a firm grip on the markets at the moment.

Trading Idea: Under 1.4775 shorts are preferred with targets 1.4745, 1.4710 and 1.4670. On a clean break of 1.4775 look for a possible re-challenge of 1.4900.

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