Strategy: Pending Short
Total Profit / Loss: +141 pips
We initially sold EURUSD at 1.4328. Prices shot higher to close above our revised stop-loss at 1.3975 and we booked the trade with a small profit. Evaluating overall positioning, the recent rally appears corrective, with the pair now testing key resistance at 1.4254 at the intersection of the 61.8% Fibonacci retracement level and the underside of a rising channel that defined the trend from June 2010 to September 2011. We will look for signs of reversal at this boundary to re-enter short over the coming days and weeks.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak
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