Trade Idea : EUR/USD – Target met and buy at 1.0870

EUR/USD – 1.1930

Most recent candlesticks pattern   : N/A

Trend                      : Sideways

Tenkan-Sen level              : 1.1939

Kijun-Sen level                  : 1.1867

Ichimoku cloud top             : 1.1798

Ichimoku cloud bottom      : 1.1782

Original strategy  :

Bought at 1.1765, met target at 1.1865

Position : – Long at 1.1765

Target :  – 1.1865

Stop : –

New strategy  :

Buy at 1.1870, Target: 1.1970, Stop: 1.1835

Position : –

Target :  –

Stop : –

The single currency finally rallied on Friday and upmove gathered momentum after breaking indicated resistance at 1.1828 (now support), our long position entered at 1.1765 met upside target at 1.1865 and euro eventually surged above recent high at 1.1910, adding credence to our bullish view for a resumption of recent upmove, hence upside bias remains for further gain to 1.1970-80, however, near term overbought condition should limit upside to 1.1200-10 and reckon 1.1250-60 would hold from here. 

As we have taken profit on our long position entered at 1.1765, would not chase this rise here and would be prudent to reinstate long on pullback as the Kijun-Sen (now at 1.1867) should limit downside and bring another upmove. Only below previous resistance at 1.1828 (now support) would abort and suggest a temporary top is possibly formed, risk test of 1.1800 but break of support at 1.1773 (Friday’s low) is needed to confirm.