Trade Idea Wrap-up: EUR/USD – Sell at 1.0725

EUR/USD – 1.0659

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 1.0655

Kijun-Sen level                  : 1.0657

Ichimoku cloud top             : 1.0670

Ichimoku cloud bottom      : 1.0662

Original strategy  :

Sell at 1.0725, Target: 1.0610, Stop: 1.0760

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.0725, Target: 1.0610, Stop: 1.0760

Position : –

Target :  –

Stop : –

As the single currency has remained under pressure after recent selloff, bearishness remains for the decline from 1.0906 to extend further weakness to 1.0620, then test of previous chart support at 1.0600, however, a sustained breach below the latter level is needed to retain downside bias for subsequent selloff to 1.0570-75 first.

In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 1.0720-30 should limit upside. Only a firm break above resistance at 1.0773 would suggest low is formed instead, bring a stronger rebound to 1.0800 but resistance at 1.0827 should remain intact.