EUR/USD - 1.2427

New strategy :

Stand aside

As the single currency has continued to edge higher after breaking yesterday's high of 1.2415, we are keeping our view that a temporary low has been formed at 1.2234 earlier and recent decline is still being retraced, break of 1.2459-60 (current level of the Ichimoku cloud top and 50% Fibonacci retracement of 1.2685 to 1.2234) would bring stronger correction to 1.2500 but resistance at 1.2576 should cap upside.

On the downside, below the Kijun-Sen (now at 1.2364) would suggest intra-day top is possibly formed and bring test of 1.2282 support, however, only break of this level would confirm correction is over and extend weakness to 1.2310/15.

As near term outlook is still mixed, stand aside in the meantime.