EURUSD: Looking to Add to Short on Bounce
I 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 and I have subsequently revised my stop-loss to be triggered on a daly close above 1.2865 after prices overcame my second objective. An Inverted Hammer candlestick coupled with positive RSI divergence above support in the 1.2481-1.25 area suggests an upswing is ahead, which I will treat as an opportunity to add to the short position once the correction is exhausted. The 1.2674 level has been recast as near-term resistance.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.