Trade Idea Wrap-up: EUR/USD – Sell at 1.1830

EUR/USD – 1.1790

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 1.1796

Kijun-Sen level                  : 1.1771

Ichimoku cloud top             : 1.1851

Ichimoku cloud bottom      : 1.1841

Original strategy  :

Sell at 1.1830, Target: 1.1730, Stop: 1.1865

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.1830, Target: 1.1730, Stop: 1.1865

Position : –

Target :  –

Stop : –

As the single currency found support at 1.1728 after dropping sharply on Friday, suggesting consolidation above this level would be seen and recovery to 1.1810-15 cannot be ruled out, however, reckon previous support at 1.1830 would limit upside and bring another decline later, below 1.1750 would bring test of 1.1723-28 (previous support as well as 61.8% Fibonacci retracement of 1.1613-1.1910), break there would add credence to our view that top has been formed at 1.1910 last week, bring further fall to 1.1700 but reckon support at 1.1650 would hold. 

In view of this, we are looking to sell euro again on recovery as 1.1830 previous support should limit upside. Above the upper Kumo (now at 1.1851) would defer and risk a stronger rebound to 1.1870 but price should falter below said last week’s high at 1.1910, bring another decline later.