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EURUSD: Second Objective Hit on Short Trade

By , Currency Strategist
24 May 2012 01:39 GMT

Strategy: Short at 1.3073 (Avg), Targeting 1.2481

Floating Profit / Loss: +496 pips

We initially sold EURUSD at 1.3121 and added to the position at 1.3026. The pair sold off after forming a bearish Harami candlestick pattern at trend line resistance and we revised our stop-loss and target levels after the decline met our initial objective. Prices have now closed below our second downside threshold at 1.2674 and we will revise the stop-loss further to be triggered on a daily close above 1.2865, aiming for the next downside barrier at 1.2481. Importantly, emerging positive RSI divergence warns that the risk of a corrective upswing is rising.

EURUSD_Second_Objective_Hit_on_Short_Trade_body_Picture_5.png, EURUSD: Second Objective Hit on Short Trade

--- 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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24 May 2012 01:39 GMT