EUR/USD – 1.0550
Original strategy :
Buy at 1.0515, Target: 1.0625, Stop: 1.0485
Position : –
Target : –
Stop : –
New strategy :
Buy at 1.0515, Target: 1.0625, Stop: 1.0485
Position : –
Target : –
Stop : –
Although the single currency has rebounded after falling to 1.0525, reckon upside would be limited to 1.0600-05 and near term downside risk remains for another decline, however, as broad outlook remains consolidative, reckon downside would be limited to 1.0510-15 and bring another rebound later. Above 1.0600-05 would suggest the fall from 1.0640 has ended, bring further gain to 1.0620, then test of said resistance at 1.0640. Only a break above 1.0640 would extend the erratic rise from 1.0493 low for retracement of early decline to 1.0660-65 (50% Fibonacci retracement of 1.0829-1.0493) and possibly towards resistance at 1.0680 but price should falter well below 1.0700-05 (61.8% Fibonacci retracement).
In view of this, we are looking to buy euro on dips. Below 1.0510 would risk retest of 1.0493 but only break there would shift risk back to the downside and signal recent decline from 1.0829 has resumed for further selloff to 1.0470 and then towards previous support at 1.0454.
