Trade Idea Wrap-up: EUR/USD – Hold short entered at 1.1880

EUR/USD – 1.1880

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 1.1862

Kijun-Sen level                  : 1.1868

Ichimoku cloud top             : 1.1835

Ichimoku cloud bottom      : 1.1796

Original strategy  :

Sold at 1.1880, Target: 1.1780, Stop: 1.1915

Position : – Short at 1.1880

Target :  – 1.1780

Stop : – 1.1915

New strategy  :

Hold short entered at 1.1880, Target: 1.1780, Stop: 1.1915

Position : – Short at 1.1880

Target :  – 1.1780

Stop : – 1.1915

Although the single currency extended recent upmove to 1.1910 yesterday, the subsequent retreat suggests consolidation below this level would be seen and mild downside bias is for weakness to 1.1810-15, however, break of 1.1780-85 (50% Fibonacci retracement of 1.1650-1.1910 and previous support) is needed to signal top is formed, bring retracement of recent rise to 1.1745-50 (61.8% Fibonacci retracement) but support at 1.1723 would remain intact.

In view of this, we are holding on to our short position entered at 1.1880. Above said resistance at 1.1910 would signal recent upmove is still in progress and may extend headway to 1.1940-50 and possibly towards 1.1970-75 before correction takes place.