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EURUSD: Topping Pattern Awaits Confirmation

By , Currency Strategist
20 April 2012 08:57 GMT

Strategy: Short at 1.3073 (Avg), Targeting 1.2864

Floating Profit / Loss: -89 pips

We initially sold EURUSD at 1.3121 and added to the position at 1.3026. The pair continues to trace out a choppy Head and Shoulders topping chart formation, with a daily close below neckline support at 1.3025 confirming the setup. The appearance of a bullish Piercing Line candlestick pattern warns an upswing may be ahead however, with initial resistance marked by a falling trend line now at 1.3303. We will remain short for now, maintaining an initial downside objective at 1.2864. A stop-loss will be activated on a daily close above 1.3378.

EURUSD_Topping_Pattern_Awaits_Confirmation_body_Picture_5.png, EURUSD: Topping Pattern Awaits Confirmation

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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20 April 2012 08:57 GMT