Trade Idea Update: EUR/USD – Sell at 1.1955

EUR/USD – 1.1904

Original strategy  :

Sell at 1.1955, Target: 1.1855, Stop: 1.1990

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.1955, Target: 1.1855, Stop: 1.1990

Position : –

Target :  –

Stop : –

Although the single currency staged a brief bounce to 1.1980 on Friday, the subsequent anticipated retreat suggests the rebound from 1.1823 has ended there and consolidation with downside bias is seen for another fall to this level, break there would add credence to our view that top has been formed at 1.2070 earlier and extend the fall from there to 1.1815-18 (61.8% Fibonacci retracement of 1.1662-1.2070), then 1.1790-00 but downside should be limited and previous support at 1.1773 should remain intact. 

In view of this, we are looking to sell euro again on recovery as 1.1950-55 should limit upside. Only break of said resistance at 1.1980 would abort and signal the fall from 1.2070 has ended at 1.1823 yesterday, bring further gain to 1.2000 and possibly towards 1.2025-30.