EUR/USD - 1.2635

Most recent candlesticks pattern : N/A Trend : Down

Tenkan-Sen level :1.2637 Kijun-Sen level :1.2682 Ichimoku cloud top :1.2840 Ichimoku cloud bottom :1.2836

Original strategy :

Sell at 1.2800, Target: 1.2720, Stop: 1.2850

New strategy :

Sell at 1.2750, Target: 1.2650, Stop: 1.2800

The single currency ran into layers of offers yesterday around 1.2750/51 and dropped again on risk aversion and although price slipped to an intra-day low of 1.2605, loss of near term momentum suggests risk is for a minor rebound to the Kijun-Sen (now at 1.2682), break there would bring retracement to 1.2750, however, renewed selling interest would emerge there and bring another decline later. A sustained breach below 1.2600/05 would extend weakness to 1.2550/60 but reckon recent low at 1.2510 would hold from here.

In view of the above analysis, we are looking to sell on subsequent recovery. Above 1.2800 would prolong choppy trading above 1.2510 and risk rebound to the Ichimoku cloud area at 1.2836/40.