4:48a GMT – No trades from yesterday’s signal as the pair just kept dropping and never rose enough to give us an entry signal. A new low was made at 1.3535, further confirming our bearish bias and the Euro is sitting at 10-month lows at the moment against the greenback.

Daily Outlook: As we sit right now the pair has been capped by a bearish trendline on the daily, 4-hour and hourly charts since mid-January (take a look at the chart below – see that nice downward slope and the bottom blue trend line? That is why we have been selling for all of 2010 so far!). The pair is currently, as I write this, flirting with resistance at 1.3650 – my first level of resistance. I am actively watching for a candlestick confirmation in this area to short off of though my preferred shorting zone will be where at the trend resistance, currently around 1.3690.