Trade Idea Wrap-up: EUR/USD - Sell at 1.0645

EUR/USD – 1.0566

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.0552

Kijun-Sen level                  : 1.0552

Ichimoku cloud top             : 1.0607

Ichimoku cloud bottom      : 1.0600

Original strategy  :

Sell at 1.0645, Target: 1.0520, Stop: 1.0680

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.0645, Target: 1.0520, Stop: 1.0680

Position : –

Target :  –

Stop : –

Although the single currency fell marginally to 1.0518, lack of follow through selling and the subsequent rebound suggest consolidation would be seen and recovery to the Ichimoku cloud (now at 1.0600-07) cannot be ruled out, however, reckon upside would be limited to 1.0620-25 and price should falter below resistance at 1.0658, bring another decline to 1.0495-05 (1.618 times projection of 1.0817-1.0666 measuring from 1.0746) but near term oversold condition should limit downside to 1.0450-55. 

In view of this, would not chase this fall here and would be prudent to sell euro on subsequent recovery as 1.0658 resistance should limit upside. Above 1.0665-70 would defer and suggest a temporary low is formed instead, bring retracement of recent decline to 1.0700-10 first.

Trade Idea Wrap-up: EUR/USD - Sell at 1.0645