EUR/USD – 1.1700
Original strategy :
Sell at 1.1770, Target: 1.1670, Stop: 1.1805
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.1755, Target: 1.1655, Stop: 1.1790
Position : –
Target : –
Stop : –
Current selloff adds credence to our view that the rebound from 1.1689 (last week’s low) has ended at 1.1847 and a firm break below said support would extend recent decline from 1.1910 top to 1.1640-50 (50% Fibonacci retracement of 1.1370-1.1910 and previous support), below there would encourage for subsequent fall towards 1.1600-10 which is likely to hold from here due to near term oversold condition.
In view of this, we are looking to sell euro on recovery as 1.1755-60 should limit upside and bring another decline later. Above 1.1790-95 would abort and risk a stronger rebound to 1.1820 but price should falter below said resistance at 1.1847.
