Trade Idea: EUR/USD - Sell At 1.4840

EUR/USD - 1.4721

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level : 1.4774
Kijun-Sen level : 1.4771
Ichimoku cloud top : 1.4916
Ichimoku cloud bottom : 1.4883

Original strategy

Sell at 1.4860, Target: 1.4660, Stop: 1.4920

New strategy

Sell at 1.4840, Target: 1.4660, Stop: 1.4900

Although the single currency recovered to 1.4846 yesterday, renewed selling interest emerged below previous resistance at 1.4860 and euro retreated again in tandem with sterling, however, break of 1.4681 support is needed to confirm the decline from 1.5064 top has resumed and extend weakness towards 1.4625 (61.8% projection of 1.5064 to 1.4683 measuring from 1.4860) but reckon 1.4555 (50% Fibonacci retracement of 1.4045 to 1.5064) would remain intact.

In view of the above analysis, we are selling euro on recovery. Only above 1.4918 (61.8% Fibonacci retracement of 1.5064-1.4681) would signal low has been formed instead and strong rebound to the cloud area at 1.4946-54 would follow.