Trade Idea: EUR/USD - Sell At 1.3850, O.C.O. Buy At 1.3495

EUR/USD - 1.3698

Most recent candlesticks pattern : N/A

Trend : Down

Tenkan-Sen level : 1.3670
Kijun-Sen level : 1.3806
Ichimoku cloud top : 1.4024
Ichimoku cloud bottom : 1.3942

Original strategy

Sell at 1.3805, Target: 1.3600, Stop: 1.3870

O.C.O. Buy at 1.3495, Target: 1.3700, Stop: 1.3430

New strategy

Sell at 1.3850, Target: 1.3650, Stop: 1.3915

O.C.O. Buy at 1.3495, Target: 1.3700, Stop: 1.3430

Although euro's consolidation above last Friday's low at 1.3585 is expected to continue and further recovery to 1.3750/60 and possibly to the Kijun-Sen (now at 1.3806) cannot be ruled out, renewed selling should emerge around resistance at 1.3851 (previous support turned resistance) and bring another decline later. Break of said support would extend recent decline towards 1.3495/00, however, loss of near term downward momentum should prevent sharp fall below there and reckon 1.3434 (1.236 times projection of 1.5145 to 1.4218 measuring from 1.4580) would hold, bring a strong rebound later this week.

In view of the above analysis, whilst we are still looking to sell euro on recovery for one more fall, we would also venture long on next decline. A firm breach of 1.3902 (38.2% Fibonacci retracement of 1.4415 to 1.3585) would suggest a temporary low is possibly formed and risk retracement to the Ichimoku cloud bottom (now at 1.3942).