Trade Idea Update: EUR/USD – Target met and stand aside

EUR/USD – 1.1873

Original strategy  :

Sold at 1.1970, met target at 1.1870

Position : – Short at 1.1970

Target :  – 1.1870

Stop : –

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

The single currency has fallen again after opening lower today, adding credence to our bearish view (our short position entered at 1.1970 met our target at 1.1870 with 100 points profit), although this anticipated decline suggests test of previous support at 1.1861 cannot be ruled out, a sustained breach below this support is needed to extend the fall from 1.2035 to previous support at 1.1838, then towards 1.1800 which is likely to hold on first testing.

As we have taken profit on our short position entered at 1.1970, would not chase this fall here and would be prudent to stand aside for now. Above the Tenkan-Sen (now at 1.1900) would bring recovery to the Kijun-Sen (now at 1.1922) but reckon upside would be limited to 1.1940-50 and 1.1980-85 should hold.