Trade Idea: EUR/USD - Sell At 1.4030

EUR/USD - 1.3974

Most recent candlesticks pattern : Shooting star

Trend : Sideways

Tenkan-Sen level : 1.3965
Kijun-Sen level : 1.3952
Ichimoku cloud top : 1.4045
Ichimoku cloud bottom : 1.4022

New strategy : Sell at 1.4030, Target: 1.3900, Stop: 1.4080

Although we exited our short position with 50 points profit and sold euro again at a higher level, the single currency rose briefly to a high of 1.4074 yesterday on active cross-buying in euro, however, as the currency pair failed to sustain above the Ichimoku cloud and quickly reversed, a 'shooting star' was formed at 1.4074 on the 4 hour chart, suggesting the rebound from 1.3832 has ended there and downside bias is for further fall to 1.3900. Having said that, it is necessary to see a break of 1.3832 support to confirm the decline from 1.4202 has resumed to 1.3800 but chart support at 1.3747 should hold today.

In view of the above analysis, we are still looking to sell euro on recovery but one should book profit on such a fall. In the event euro rises above resistance at 1.4074 again, this would abort our bearish view and it would also prolong the choppy consolidation within 1.3747-1.4339 range, then gain to 1.4140/50 would follow.