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

EUR/USD – 1.0620

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 1.0639

Kijun-Sen level                  : 1.0639

Ichimoku cloud top             : 1.0659

Ichimoku cloud bottom      : 1.0656

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 weak after recent selloff, adding credence to our bearish view that the decline from 1.0906 is still in progress for further weakness towards 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 and possibly towards 1.0550.

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.