Trade Idea Wrap-up: EUR/USD – Hold short entered at 1.1620

EUR/USD – 1.1592

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.1596

Kijun-Sen level                  : 1.1583

Ichimoku cloud top             : 1.1636

Ichimoku cloud bottom      : 1.1604

Original strategy  :

Sold at 1.1620, Target: 1.1520, Stop: 1.1620

Position : – Short at 1.1620

Target :  – 1.1520

Stop : – 1.1620

New strategy  :

Hold short entered at 1.1620, Target: 1.1520, Stop: 1.1620

Position : – Short at 1.1620

Target :  – 1.1520

Stop : – 1.1620

Although the single currency fell to as low as 1.1554 yesterday, the subsequent rebound suggests consolidation above this level would b seen, however, reckon upside would be limited and as long as 1.1615-20 holds, bearishness remains for another decline, below said support at 1.1554 would extend recent 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 1.1620-25 would defer and risk test of the upper Kumo (now at 1.1636) would risk another bounce towards 1.1691, however, only break there would abort and suggest low has been formed, bring retracement of recent decline to previous support at 1.1725 (now resistance).