Trade Idea Wrap-up: EUR/USD – Hold short entered at 1.0570


EUR/USD – 1.0554

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.0542

Kijun-Sen level                  : 1.0535

Ichimoku cloud top             : 1.0569

Ichimoku cloud bottom      : 1.0534

Original strategy  :

Sold at 1.0570, Target: 1.0470, Stop: 1.0605

Position : – Shoer at 1.0570

Target :  – 1.0470

Stop : – 1.0605

New strategy  :

Hold short entered at 1.0570, Target: 1.0470, Stop: 1.0575

Position : – Short at 1.0570

Target :  – 1.0470

Stop : – 1.0575

Euro’s intra-day rally suggests caution on our short position entered at 1.0570 but as long as intra-day resistance at 1.0574 holds, mild downside bias remains for another retreat later, below 1.0520-25 would bring another fall towards 1.0493 support (last week’s low), however, break there is needed to confirm early decline from 1.0829 has resumed for further selloff to 1.0470 and then towards previous support at 1.0454.

In view of this, we are holding on to our short position entered at 1.0570. Only break of resistance at 1.0631 would abort and signal temporary low has been formed instead, bring a stronger rebound to 1.0660-65 (50% Fibonacci retracement of 1.0829-1.0493) but price should falter below resistance at 1.0680.

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