Trade Idea: EUR/USD - Sell at 1.4025 (Update)

EUR/USD - 1.3937

Most recent candlesticks pattern : N/A
Trend : Sideways
Tenkan-Sen level : 1.3935
Kijun-Sen level : 1.3874
Ichimoku cloud top : 1.4070
Ichimoku cloud bottom : 1.4004

Original trading strategy : Sell at 1.4025, Target : 1.3900, Stop: 1.4075

New strategy is : Sell at 1.4025, Target : 1.3900, Stop: 1.4075

The single currency traded in relatively narrow range after early choppy movements and as Kijun-Sen is still containing the downside of euro so far, suggesting another rebound to 1.4025/30 cannot be ruled out, however, euro's upside is likely to be limited to the Ichimoku cloud area and the flat ground at the top of Ichimoku cloud should continue to hold and bring another retreat later.

Therefore, we still prefer to sell the currency pair on recovery with stop placing above the Ichimoku cloud top at 1.4070 for another drop to 1.3872, a break below there would indicate the rebound from 1.3747 has ended, then further decline to 1.3800/06 would follow. Looking ahead, below support at 1.3800/06 would confirm the correction is over, then retest of 1.3747 would be seen but it is necessary to see a clear break of this level to confirm the decline from 1.4339 top has resumed to 1.3700 and eventually towards 1.3645.

In the unlikely event the Ichimoku cloud top is broken, then the picture will turn a bit bullish for gain to 1.4120/30 but only a rise above the 1.4177 resistance would signal the fall from 1.4339 top has ended.