EUR/USD – 1.0630
Original strategy :
Sold at 1.0665, Target: 1.0565, Stop: 1.0680
Position : – Short at 1.0665
Target :Â – 1.0565
Stop : – 1.0680
New strategy :
Hold short entered at 1.0665, Target: 1.0565, Stop: 1.0680
Position : – Short at 1.0665
Target :Â – 1.0565
Stop : – 1.0680
Although the single currency staged a strong rebound after finding support at 1.0589, as this move from 1.0570 is viewed as retracement of recent decline, reckon upside would be limited and bring retreat later, below the upper Kumo (now at 1.0606) would bring test of said support at 1.0589 but break there is needed to signal the rebound from 1.0570 has ended, bring retest of this Monday’s low, below there would extend the decline from 1.0906 to 1.0550-55 (50% projection of 1.0906-1.0635 measuring from 1.0689), then 1.0525-30.
In view of this, we are holding on to our short position entered at 1.0665. A firm break above intra-day resistance at 1.0678 would abort and suggest low has been formed at 1,0570, bring a stronger rebound to 1.0698-02 (50% Fibonacci retracement of 1.0827-1.0570 and previous resistance).
