Trade Idea: EUR/USD - Sell At 1.4065

EUR/USD - 1.4012

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 1.4042
Kijun-Sen level : 1.4065
Ichimoku cloud top : 1.4003
Ichimoku cloud bottom : 1.3972

New strategy : Sell at 1.4065, Target: 1.3930, Stop: 1.4115

The single currency extended the decline from 1.4202 to as low as 1.3927 yesterday, confirming the rise from 1.3747 has ended at 1.4202 and although price has rebounded from 1.3927 on short-covering, as top has already been formed, upside would be limited to 1.4065 (50% Fibonacci retracement of 1.4202 to 1.3927 as well as current level of Kijun-Sen) and price should falter below 1.4097 (61.8%), then the currency pair shall head south again for another fall to 1.3927, break there would extend towards 1.3888. Looking ahead, it is necessary to see euro dropping below 1.3826 support to confirm the decline from 1.4339 top has resumed.

In view of this, we are looking to sell euro on further rise. Above 1.4110/15 would defer this bearish scenario and stronger rebound to 1.4153/55 cannot be ruled out, however, resistance at 1.4202 should still cap the upside and bring another selloff probably next week.