Trade Idea Wrap-up: EUR/USD – Sell at 1.3060

EUR/USD – 1.2946
Most recent candlesticks pattern : N/A
Trend     : Near term down

Tenkan-Sen level               :1.2956
Kijun-Sen level                 :1.2977
Ichimoku cloud top              :1.3067
Ichimoku cloud bottom          :1.3021

Original strategy : 

Sell at 1.3060, Target: 1.2960, Stop: 1.3095

Position: -
Target:  -
Stop:-

New strategy  :  

Sell at 1.3060, Target: 1.2960, Stop: 1.3095

Position: -
Target:  -
Stop:-

Although current breach of this week’s low at 1.2956 signals recent decline from 1.3284 top is still in progress and weakness to 1.2920-25 is likely, loss of near term momentum should limit downside to 1.2900, risk from there remains for a much needed corrective rebound to take place. Above the Kijun-Sen (now at 1.2977 would bring test of intra-day high of 1.3008, then the Ichimoku cloud bottom (now at 1.3021) but 1.3065-67 (previous resistance and current level of the upper Kumo) should limit upside, bring another decline.

In view of this, would not chase this decline here and we prefer to sell euro on recovery. Only break of previous support at 1.3095 would signal a temporary low is formed and bring retracement of recent decline to 1.3120.

View the original article here