EUR-USD Trade Idea: Sell at 1.2340, Target: 1.2180, Stop: 1.2375
EUR-USD - 1.2249 Close
Most recent candlesticks pattern : N/A
Trend : Down
Tenkan-Sen level :1.2210
Kijun-Sen level :1.2210
Ichimoku cloud top :1.2246
Ichimoku cloud bottom :1.2215
Original strategy : Sell at 1.2335, Target: 1.2180, Stop: 1.2370
New strategy : Sell at 1.2340, Target: 1.2180, Stop: 1.2375
Friday the EUR rebounded after intra-day marginal fall to 1.2162, suggesting a minor low is formed there and consolidation with mild upside bias is seen for retracement to 1.2295-00, but, any upside is likely to be limited to 1.2334-40, this week's high and 38.2% Fibonacci retracement of 1.2627-1.2162 , and bring on a decline later.
A break of the support would extend recent fall to 1.2150 and possibly 1.2136, a 50% projection of 1.2627-1.2230 measuring from 1.2334 but the loss of momentum should prevent sharp fall below 1.2100-05, 50% projection of 1.2693-1.2230 measuring from 1.2334, and bring on another rebound this week.
This being in view, and as I am looking to sell the Euro on any recovery, consideration should be given to go long on subsequent decline.
A break below 1.2089, 61.8% projection of 1.2627-1.2230 measuring from 1.2334 risks weakness towards 1.2055-60, but 1.2050 should hold on the 1st test. Stay tuned...
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.