February 1, 2010 05:58

Forex Signals – EUR/USD Bearish Trend Line

By:

2-1-10

5:34a GMT – Strong bearish trend continued, in line with last week’s analysis. Last week I looked for and opened shorts every day of the week and almost all of them were profitable given the strong bearish movements. The US dollar reached 6-month highs on Friday alongside fundamental news that the US economy had grown much faster than expected (via the GDP numbers) and consumer confidence had been corrected higher. The key will be if this economic growth can continue as government spending programs wind down.

Daily Outlook: The pair is currently capped by three trend resistance lines, two obvious on the 60m chart and all evident on the 4-hour. As long as these first two resistance zone that you can see on the 60m charts (blue trend lines on chart below) hold I am bearish on the day. Trend is extremely bearish and the only major threat is that we are overdue for a correction on these timeframes.

Trading Idea: Right around the first trend resistance at 1.3930 we have the 23.6% retracement of the recent drop and I will look to sell in this area. Short targets at 1.3900, 1.3870 and 1.3840. I will also consider shorts in other areas as long as upper trend resistance is not broken as trend is strong.

(click to enlarge)

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121 Comments on "Forex Signals – EUR/USD Bearish Trend Line"
  1. Reply
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    Comment left on:
    February 1, 2010 at 20:54
    Lisa says:

    PATIENCE IS A TRUE VIRTUE!!!!

    • Reply
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      Comment left on:
      February 1, 2010 at 20:59
      Bob says:

      I agree, I assume your still in? I certainly am.

      • Reply
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        Comment left on:
        February 1, 2010 at 22:19
        Lisa says:

        Bob,

        No, I am not in yet. I am just being patient.

        • Reply
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          Comment left on:
          February 1, 2010 at 22:47
          Bob says:

          I think I may find that I had as much patience as you on this trade LOL.

    • Reply
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      Comment left on:
      February 1, 2010 at 21:03
      Tommy says:

      I agree :) , just that if time holding positions open longer its more likely to be costly

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      Comment left on:
      February 1, 2010 at 21:16
      Tommy says:

      Entered a new small long @ 1.3930 , sl 1.3945 and good night to all! Target at fibo 1.272 @ 1.3775

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      Comment left on:
      February 1, 2010 at 22:28
      Matthew says:

      Right are you Lisa. I hope you have a great week of trading.:)

  2. Reply
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    Comment left on:
    February 1, 2010 at 21:01
    Yax says:

    Lisa,

    You have taught me a lesson.

  3. Reply
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    Comment left on:
    February 1, 2010 at 21:44
    andrick says:

    I didn’t see which point it will go down..it seems like it will continually go up to 1.4000…what do you guys think? I closed my positions with losses..but if i find selling point later i might go short again..

  4. Reply
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    Comment left on:
    February 1, 2010 at 22:02
    Tommy says:

    1H doji at 22gmt, bearish

  5. Reply
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    Comment left on:
    February 1, 2010 at 22:04
    andrick says:

    yah…yah…yah…i can see it…hope this will work

    • Reply
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      Comment left on:
      February 1, 2010 at 22:09
      Tommy says:

      might work, might not. Risk reward is pretty decent.
      I was hoping today stronger usd, but every is bailing out..

      Good night , God bless everyone!

  6. Reply
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    Comment left on:
    February 1, 2010 at 22:20
    andy says:

    @Sallie:

    Dear Clients,

    On February 1, 2010 16:19:12 there has been a non-market price inside the quote feed for EUR.

    If you incurred losses due to this incident, then according to the trading terms and conditions, please submit your refund request by filling out the feedback form here — http://www.fxclub.com/feedback-en/

    We apologize for any inconvenience.

    Sincerely,
    Forex Club

    Hmmmmmmmm
    I have never seen such a spike on my platform.
    So Sallie I guess you hit the jackpot, if you do not complain about your gains. LOL.

  7. Reply
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    Comment left on:
    February 1, 2010 at 23:37
    Tenkis says:

    Doji + shooting star 1H, fingers crossed

    • Reply
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      Comment left on:
      February 1, 2010 at 23:44
      andrick says:

      it looks going down but i can see that it has difficulty to cross the zero line momentum..

  8. Reply
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    Comment left on:
    February 3, 2010 at 06:14
    Farz says:

    Does some one know of free chart where the indicators do not change after the bar is closed.
    Regards

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