4:35a GMT - The pair did indeed drop as predicted yesterday, though it never made it to the 1.4435 resistance zone. We did get several bearish signals on the 1 hour and 4 hour charts though, including a double doji and a shooting star at the 1.4400 resistance. Those who did have a short open benefited to the tune of over 200 pips.

Daily Outlook: The pair is very bearish right now. Multiple levels of support have been smashed, including the very important rising trend support from late December on the daily chart. The pair also hit its lowest point in the last several months yesterday after dropping 400 pips in the past week. I've seen a lot of beginners get themselves in a pickle in a drop like this because they start trying to call a bottom. They see how much its dropped and think that it has to bounce back eventually right? Wrong-o. As a technical analyst I believe the market will tell me what I need to know and right now it is telling me it is bearish. It can always fall more.

Trading Idea: I'm selling rallies. Preferred zone is the bottom of the former support (now resistance) around 1.4285, but I will also look at 1.4250 and even a sustained downside break of 1.4180.

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