Trade Idea: EUR/USD - Sell at 1.4065

EUR/USD - 1.4002

Most recent candlesticks pattern : N/A
Trend : Sideways
Tenkan-Sen level : 1.4028
Kijun-Sen level : 1.4065
Ichimoku cloud top : 1.4017
Ichimoku cloud bottom : 1.3974

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

The single currency remained sidelined after recovering from 1.3927 and further consolidation above this level should take place, however, as top has been formed at 1.4202 earlier, 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 our bearish view remains that euro should stay below 1.4097 (61.8%) and fall again for another test of 1.3927, break there would extend decline from 1.4202 towards 1.3888. Looking ahead, we still need to see euro breaking below support at 1.3826 to confirm another leg of fall from 1.4339 top is under way.

In view of this, we still prefer to sell on further rise. If price rises above 1.4110/15, this would defer our bearishness and rebound to 1.4153/55 cannot be ruled out but the currency pair shall stay well below resistance at 1.4202 and we shall see another selloff next week.