Trade Idea: EUR-USD pair – sell at 1.3040

EUR-USD pair – 1.2964

Most recent candlesticks pattern : N/A

Trend: Near term Up

Tenkan-Sen level :1.2997
Kijun-Sen level :1.3018
Ichimoku cloud top :1.3065
Ichimoku cloud bottom :1.3048

New strategy : Sell at 1.3040, Target: 1.2940, Stop: 1.3075

Euro’s selloff after breaking support at 1.3013 adds credibility to my Bearish POV that top is formed at 1.3140 and the Southside bias remains for the decline from there to bring further weakness to 1.2935-40 and possibly towards 1.2900-10. But, as broad outlook remains consolidative, downside should be limited to 1.2891 support at 1.2827 should remain intact.

That being the case, I am still looking to sell EUR on recovery as the Ichimoku cloud bottom, now at 1.3048 should limit the Northside. Only a break of intra-day resistance at 1.3075, this would penetrate upper Kumo at 1.3065, and would abort and signal low is formed instead, risk test of 1.3084, then towards 1.3120-25.

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.

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