Trade Idea Wrap-up: EUR/USD – Hold short entered at 1.1620

EUR/USD – 1.1590

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.1600

Kijun-Sen level                  : 1.1621

Ichimoku cloud top             : 1.1664

Ichimoku cloud bottom      : 1.1649

Original strategy  :

Sold at 1.1620, Target: 1.1520, Stop: 1.1655

Position : – Short at 1.1620

Target :  – 1.1520

Stop : – 1.1655

New strategy  :

Hold short entered at 1.1620, Target: 1.1520, Stop: 1.1655

Position : – Short at 1.1620

Target :  – 1.1520

Stop : – 1.1655

The single currency dropped after meeting renewed selling interest at 1.1691, adding credence to our view that top has been formed there and consolidation with downside bias remains for weakness to previous support at 1.1574, however, break there is needed to confirm recent decline has resumed and extend fall to 1.1520-25, then 1.1500 but near term oversold condition should prevent sharp fall below latter level. 

In view of this, we are holding on to our short position entered at 1.1620. Above 1.1650-55 would risk another bounce to 1.1691, however, only break there would abort and suggest further choppy trading above 1.1574 and bring a stronger rebound to 1.1700-05 but upside should be limited to previous support at 1.1725 (now resistance).