Trade Idea: EUR/USD - Sell at 1.3900

EUR/USD - 1.3748

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 1.3698
Kijun-Sen level : 1.3798
Ichimoku cloud top : 1.4024
Ichimoku cloud bottom : 1.3954

Original strategy :

Sell at 1.3850, Target: 1.3650, Stop: 1.3915

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

New strategy :

Sell at 1.3900, Target: 1.3700, Stop: 1.3965

Although the single currency has continued to edge higher after falling to 1.3585 last Friday, suggesting retracement of recent decline is underway and a break of the Kijun-Sen (now at 1.3798) would bring correction towards resistance at 1.3851 (previous support turned resistance), however, renewed selling interest should emerge around 1.3902 (38.2% Fibonacci retracement of 1.4415 to 1.3585), bring another decline later. Below intra-day support at 1.3643 would signal recovery from 1.3585 has ended, then recent decline should resume for retest of this level later.

In view of the above analysis, whilst we are still looking to sell dollar on recovery, we prefer to raise our entry. Only a firm breach of the Ichimoku cloud bottom (now at 1.3954) would suggest a temporary low has been formed and risk correction towards 1.4024-27 (current level of the upper Kumo and previous resistance).