Trade Idea Wrap-up: EUR/USD – Sell at 1.1700

EUR/USD – 1.1625

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.1622

Kijun-Sen level                  : 1.1608

Ichimoku cloud top             : 1.1708

Ichimoku cloud bottom      : 1.1647

Original strategy  :

Sell at 1.1685, Target: 1.1585, Stop: 1.1720

Position : –

Target :  –

Stop : –

New strategy  :

Sell at 1.1685, Target: 1.1585, Stop: 1.1720

Position : –

Target :  –

Stop : –

As the single currency recovered after falling to 1.1574 on Friday, suggesting consolidation above this level would be seen and corrective bounce to 1.1645-50 cannot be ruled out, however, reckon upside would be limited to the upper Kumo (now at 1.1708) and bring another decline later, below said support at 1.1574 would extend recent decline from 1.2093 top to 1.1550-55 but loss of downward momentum should prevent sharp fall below 1.1520-25 and reckon 1.1500 would hold from here.

In view of this, we are looking to sell euro on subsequent recovery as the upper Kumo (now at 1.1700) should limit upside and bring another decline. Only above previous support at 1.1725 (now resistance) would signal low is formed instead, bring retracement of recent decline to 1.1750-55 first.