Trade Idea Wrap-up: EUR/USD – Buy at 1.0870

EUR/USD – 1.1963

Most recent candlesticks pattern   : N/A

Trend                      : Up

Tenkan-Sen level              : 1.1943

Kijun-Sen level                  : 1.1915

Ichimoku cloud top             : 1.1824

Ichimoku cloud bottom      : 1.1824

Original strategy  :

Buy at 1.1870, Target: 1.1970, Stop: 1.1835

Position : –

Target :  –

Stop : –

New strategy  :

Buy at 1.1870, Target: 1.1970, Stop: 1.1835

Position : –

Target :  –

Stop : –

The single currency finally rallied on Friday and upmove gathered momentum after breaking indicated resistance at 1.1828 (now support) and euro eventually surged above recent high at 1.1910, adding credence to our bullish view for a resumption of recent upmove, hence upside bias remains for further gain to 1.1980, however, near term overbought condition should limit upside to 1.1200-10 and reckon 1.1250-60 would hold from here. 

In view of this, would not chase this rise here and would be prudent to reinstate long on pullback as support at 1.0864 should limit downside and bring another upmove. Only below previous resistance at 1.1828 (now support) would abort and suggest a temporary top is possibly formed, risk test of 1.1800 but break of support at 1.1773 (Friday’s low) is needed to confirm.