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...

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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.