EUR/USD – 1.0580
Original strategy :
Sell at 1.0635, Target: 1.0535, Stop: 1.0670
Position : –
Target : –
Stop : –
New strategy :
Sell at 1.0635, Target: 1.0535, Stop: 1.0670
Position : –
Target : –
Stop : –
The single currency ran into renewed selling interest at 1.0667 on Friday (after NFP) and has dropped again, the breach o indicated support at 1.0600 adds credence to our bearish view that the decline from 1.0906 is still in progress and may extend further weakness towards 1.0550-55 (50% projection of 1.0906-1.0635 measuring from 1.0689), then 1.0525-30, however, near term oversold condition should prevent sharp fall below 1.0500, 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 1.0635 (previous support now resistance) should limit upside. Only a firm break above said resistance at 1.0667 would abort and suggest low is formed instead, risk a stronger rebound to 1.0689, then 1.0702.
