EUR/USD – 1.0659
Original strategy :
Sell at 1.0730, Target: 1.0610, Stop: 1.0765
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.0730, Target: 1.0610, Stop: 1.0765
Position : –
Target : –
Stop : –
As the single currency has remained under pressure after falling to 1.0642 yesterday, adding credence to our bearish view that the decline from 1.0906 top is still in progress and bearishness remains for this fall to extend further weakness to 1.0620-25, then test of previous chart support at 1.0600, however, a sustained breach below the latter level is needed to retain downside bias for subsequent selloff to 1.0570-75 first, otherwise, risk from there is seen for a rebound later.
In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 1.0730-40 should limit upside. Only a firm break above resistance at 1.0773 would suggest low is formed instead, bring a stronger rebound to 1.0800 but resistance at 1.0827 should remain intact.
