EUR/USD – 1.3073
Most recent candlesticks pattern : Shooting star
Trend : Near term down
Tenkan-Sen level :1.3127
Kijun-Sen level :1.3142
Ichimoku cloud top :1.3141
Ichimoku cloud bottom :1.3119
New strategy :
Sell at 1.3140, Target: 1.3040, Stop: 1.3175
Despite yesterday’s rise to 1.3213, the subsequent retreat from there correction from 1.3033 has ended there and consolidation with downside bias is seen for test of 1.3054, however, break there is needed to confirm the rebound from 1.3033 has ended and bring retest of last week’s low at 1.3033, below this support would confirm recent decline has resumed, then weakness towards 1.3000-05 would be seen later.
In view of this, we are looking to sell euro on recovery as the Kijun-Sen (now at 1.3142) should limit upside. Only break of 1.3175 would abort and prolong choppy consolidation, then another bounce to 1.3213 would be seen, break of this resistance would bring a stronger retracement of recent decline to 1.3240 (61.8% Fibonacci retracement of 1.3368-1.3033), however, reckon 1.3278 (previous support) would cap upside.