Trade Idea Wrap-up: EUR/USD – Hold short entered at 1.1770

EUR/USD – 1.1739

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 1.1726

Kijun-Sen level                  : 1.1751

Ichimoku cloud top             : 1.1806

Ichimoku cloud bottom      : 1.1803

Original strategy  :

Sold at 1.1770, Target: 1.1670, Stop: 1.1770

Position : – Short at 1.1770

Target :  – 1.1670

Stop : – 1.1770

New strategy  :

Hold short entered at 1.1770, Target: 1.1670, Stop: 1.1770

Position : – Short at 1.1770

Target :  – 1.1670

Stop : – 1.1770

As the single currency met renewed selling interest at 1.1824 yesterday and dropped again, adding credence to our view that the decline from 1.1910 top is still in progress and downside bias remains for this move to bring retracement of early upmove, hence further weakness to 1.0670 would be seen but reckon support at 1.1650 would remain intact due to oversold condition. 

In view of this, we are holding on to our short position entered at 1.1770. Above 1.1800-05 would risk another test of 1.1824-30 resistance but only break there would signal the erratic fall from 1.1910 has ended, bring further gain to 1.1855-60 first.