Trade Idea : EUR/USD - Sell at 1.0675

EUR/USD – 1.0596

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.0573

Kijun-Sen level                  : 1.0563

Ichimoku cloud top             : 1.0592

Ichimoku cloud bottom      : 1.0564

Original strategy  :

Sell at 1.0645, Target: 1.0520, Stop: 1.0680

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.0675, Target: 1.0550, Stop: 1.0710

Position : –

Target :  –

Stop : –

As the single currency recovered after falling marginally to 1.0518 yesterday, retaining our view that consolidation above this level would be seen and corrective bounce to 1.0640, then 1.0658 resistance cannot be ruled out, however, reckon 1.0670-75 (38.2% Fibonacci retracement of 1.0919-1.0518) would limit upside and bring another decline, below 1.0535-40 would bring retest of 1.0518 but break there is needed to extend recent decline to 1.0495-05 (1.618 times projection of 1.0817-1.0666 measuring from 1.0746). 

In view of this, would not chase this fall here and would be prudent to sell euro on further subsequent recovery as 1.0670-75 should limit upside. Above 1.0715-20 (50% Fibonacci retracement of 1.0919-1.0518) would defer and suggest a temporary low is formed instead, bring correction of recent decline to resistance at 1.0746 first.

 

Trade Idea : EUR/USD - Sell at 1.0675