Trade Idea Wrap-up: EUR/USD - Sell at 1.0740

EUR/USD – 1.0600

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.0606

Kijun-Sen level                  : 1.0642

Ichimoku cloud top             : 1.0735

Ichimoku cloud bottom      : 1.0710

Original strategy  :

Sell at 1.0700, Target: 1.0560, Stop: 1.0735

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.0740, Target: 1.0560, Stop: 1.0775

Position : –

Target :  –

Stop : –

As the single currency has dropped again after meeting renewed selling interest at 1.0746, suggesting recent selloff from 1.1616 is still in progress and may extend weakness to 1.0555-60 (1.236 times projection of 1.0817-1.0666 measuring from 1.0746) and later towards 1.0522-23 (50% projection of 1.1300-1.0709 measuring from 1.0817 and previous chart support) but reckon 1.0500-05 (1.618 times projection of 1.0817-1.0666 measuring from 1.0746) would hold on first testing. 

In view of this, would not chase this fall here and would be prudent to sell euro on subsequent recovery as 1.0700-05 should limit upside. Only a firm break above said resistance at 1.0746 would defer and risk rebound to 1.0790-00 but still reckon resistance at 1.0817 would limit upside.

Trade Idea Wrap-up: EUR/USD - Sell at 1.0740