Strategy: Short at 1.3526, Targeting 1.2586
Floating Profit / Loss: +420 pips
We initially sold EURUSD at 1.3526 and moved our stop-loss to 1.3231 after the pair met our second objective at 1.2872. Prices have since broke higher out of the falling channel established from early November and have now put in a Gravestone Doji candle below support-turned-resistance at 1.3174, the October swing bottom. The setup hints the corrective upswing may have been exhausted, with sellers poised to retake momentum. We will continue holding short, looking for the down trend to resume. Initial support lines up in the 1.2966-1.2927 region. Our longer-term objective remains at 1.2586.
--- 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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