Trade Idea Update: EUR/USD – Sell at 1.1950

EUR/USD – 1.1860

Original strategy  :

Sell at 1.1950, Target: 1.1850, Stop: 1.1985

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.1950, Target: 1.1850, Stop: 1.1985

Position : –

Target :  –

Stop : –

As the single currency has recovered after intra-day fall to 1.1823, suggesting consolidation above this level would be seen and corrective bounce to 1.1900-05 is likely, however, reckon upside would be limited to 1.1950-55 and bring another decline to 1.1815-18 (61.8% Fibonacci retracement of 1.1662-1.2070) but downside should be limited to 1.1790-00 and support at 1.1773 should remain intact. 

In view of this, we are looking to sell euro on recovery as 1.1950-55 should limit upside. Above 1.1980-85 would risk a stronger rebound to 1.2005-10 but still reckon upside would be limited to 1.2035-40 and price should falter below said this week’s high at 1.2070, bring another retreat later.