Trade Idea Wrap-up: EUR/USD – Sell at 1.0580


EUR/USD – 1.0541

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.0536

Kijun-Sen level                  : 1.0572

Ichimoku cloud top             : 1.0596

Ichimoku cloud bottom      : 1.0591

Original strategy  :

Sell at 1.0580, Target: 1.0480, Stop: 1.0615

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.0580, Target: 1.0480, Stop: 1.0615

Position : –

Target :  –

Stop : –

Although bounced to 1.0630 yesterday, the single currency has dropped sharply after faltering below resistance at 1.0631, suggesting top has been formed there and consolidation with downside bias is seen for weakness towards support at 1.0493, however, break there is needed to signal early decline from 1.0829 has resumed for further fall to 1.0470 and then towards previous support at 1.0454.

In view of this, we are looking to sell euro on recovery as 1.0590 should limit upside. Only break of resistance at 10631 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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