EUR/USD – 1.1612
Most recent candlesticks pattern : N/A
Trend : Down
Tenkan-Sen level : 1.1610
Kijun-Sen level : 1.1644
Ichimoku cloud top : 1.1658
Ichimoku cloud bottom : 1.1647
Original strategy :
Sold at 1.1620, Target: 1.1520, Stop: 1.1655
Position : – Short at 1.1620
Target : – 1.1520
Stop : – 1.1655
New strategy :
Hold short entered at 1.1620, Target: 1.1520, Stop: 1.1655
Position : – Short at 1.1620
Target : – 1.1520
Stop : – 1.1655
The single currency dropped after meeting renewed selling interest at 1.1691, adding credence to our view that top has been formed there and consolidation with downside bias remains for weakness to previous support at 1.1574, however, break there is needed to confirm recent decline has resumed and extend fall to 1.1520-25, then 1.1500 but near term oversold condition should prevent sharp fall below latter level.
In view of this, we are holding on to our short position entered at 1.1620. Above 1.1650-55 would risk another bounce to 1.1691, however, only break there would abort and suggest further choppy trading above 1.1574 and bring a stronger rebound to 1.1700-05 but upside should be limited to previous support at 1.1725 (now resistance).
