EURUSD: Profits Booked on Short Position

Strategy: Pending Short

Total Profit / Loss: +278 pips

We initially sold EURUSD at 1.3526. Prices overturned a bearish Three Inside Down candlestick pattern identified last week and broke above resistance at 1.3231, the late-November swing bottom and our revised stop-loss level. We will book our profits here and move to the sidelines, waiting for the next compelling opportunity to enter short. In fact, negative RSI divergence already warns of lackluster momentum behind the move higher. The next layer of significant resistance lines up at 1.3456.

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

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

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com