The first entry for me came at the 15:00 candle where the pair had failed to sustain a break above 1.3550 resistance in the previous candle, then gave us a bearish doji on the 1h. This was further confirmed the next hour when there was again a failed attempt to sustain a break through the resistance. Most telling was if you glanced at the smaller timeframe charts you can see it actually formed a double-top in the period. That was good for +70 pips per lot.

I just then recently took a short on the sustained break of 1.3460 (March 22nd low and strong support) and my second target has been hit for +50 pips.

Daily Outlook: My stop is at break even for the rest of the position, but for the rest of the day I will continue my strategy of looking to sell on dips and sell on sustained breaks of support. The pair has dropped over 400 pips since March 17th, broken through the bullish channel on the daily charts and established a new 10-month low yesterday - things are bearish. Immediately I will look in the 1.3465-1.3475 resistance zone for a shorting opportunity and 1.3525 above that.

Trading Idea: Looking to sell into rallies near resistance, with nearest resistance at 1.3475. Short targets at 1.3450, 1.3425 and 1.3400. Above 1.3475 I will look at resistance around 1.3525. One of my most profitable strategies in the past couple weeks has been to sell sustained breaks of resistance. The essence of that strategy is to wait for the pair to consolidate above a support level, then to sell a sustained break of that level. I will be on the lookout for the pool of consolidation throughout the day. I've circled some areas on the chart below to show you what this consolidation and breakout looks like.

(click to enlarge)

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Source: Forex Signals - EUR/USD Pip Support
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