Trade Idea : EUR/USD – Stand aside

EUR/USD – 1.1977

Most recent candlesticks pattern   : N/A

Trend                      : Up

Tenkan-Sen level              : 1.1962

Kijun-Sen level                  : 1.1988

Ichimoku cloud top             : 1.2031

Ichimoku cloud bottom      : 1.2004

Original strategy  :

Bought at 1.1985, stopped at 1.1950

Position : – Long at 1.1985

Target :  –

Stop : – 1.1950

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

Although the single currency recovered after falling to 1.1947 and test of the Kijun-Sen (now at 1.1988) cannot be ruled out, reckon upside would be limited to the lower Kumo (now at 1.2004) and bring another decline later, below said support at 1.1947 would extend the fall from 1.2093 top to 1.1926-29 (61.8% Fibonacci retracement of 1.1823-1.2093 and previous support) but reckon 1.1900 would hold on first testing.

In view of this, would be prudent to stand aside for now. Above the lower Kumo (now at 1.2004) would bring test of the upper Kumo (now at 1.2031) but a sustained breach above there is needed to signal the fall from 1.2093 has ended and bring a stronger rebound to 1.2050-55 first.