Trade Idea Wrap-up: EUR/USD – Hold short entered at 1.1770

EUR/USD – 1.1748

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 1.1732

Kijun-Sen level                  : 1.1737

Ichimoku cloud top             : 1.1757

Ichimoku cloud bottom      : 1.1740

Original strategy  :

Sold at 1.1770, Target: 1.1670, Stop: 1.1770

Position : – Short at 1.1770

Target :  – 1.1670

Stop : – 1.1770

New strategy  :

Hold short entered at 1.1770, Target: 1.1670, Stop: 1.1770

Position : – Short at 1.1770

Target :  – 1.1670

Stop : – 1.1770

As the single currency found support at 1.1689 yesterday and rebounded, suggesting consolidation above this level would be seen, however, as long as resistance at 1.1770 holds, bearishness remains for the fall from 1.1910 top to bring retracement of early upmove, hence further weakness to 1.0670 would be seen but reckon support at 1.1650 would remain intact due to oversold condition. 

In view of this, we are holding on to our short position entered at 1.1770. Above 1.1800-05 would risk another test of 1.1824-30 resistance but only break there would signal the erratic fall from 1.1910 has ended, bring further gain to 1.1855-60 first.