To receive Ilya's analysis directly via email, please SIGN UP HERE
The Euro looks to have broken the rising trend carved out against the Japanese Yen since late October to early November, signaling that the long-term down move launched over a year ago may be resuming. Risk/reward parameters look sufficiently attractive and I have entered short at 122.65, initially targeting 119.77. A stop-loss will be activated on a daily close above 124.09, the December 15 high.
The British Pound broke below support at 1.2411, the 23.6% Fibonacci expansion. This exposes the next downside barrier at 1.2186, marked by the 38.2% level. The move alters the setup noted yesterday, with the short entry level now adjusted down to 1.2429. If activated, the trade will still carry a stop-loss triggered on a daily close above 1.2550 but 1.2186 will now serve as the initial objective.
In both instances, I will take profit on half of the position when (and if) prices hit the first target and move the stop-loss to the breakeven level on the remaining exposure.
See the schedule of upcoming webinars and join us LIVE to follow the financial markets!
