EURUSD: Stay Short on Bounce
I initially sold EURUSD at 1.3526. Prices have now met the first objective with a daily close below 1.3144 and I will remain short, aiming for the next soft target at 1.2872. The stop-loss will be trailed lower to trigger on a daily close above 1.3526. Seasonal factors may produce a rebound into the year-end, which I will treat as an opportunity to add to the position. Indeed, prices have now produced a bullish Three Inside Up candlestick pattern above support at a falling trend line connecting major lows since early November, hinting a bounce to initial resistance at 1.3144 is ahead.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.