Sell EUR/USD @1.3250
Although we have yet to see any sustained downside follow through off of Wednesday’s impressive bearish reversal day that ended a sequence of 9 consecutive daily higher lows, we contend that the formation still signals the start to a medium-term top in the pair ahead of a material corrective pullback at a minimum. With technicals looking to unwind from overbought after a very strong move from 1.1880 up to 1.3260, there is plenty of room for pullback and as such, any rallies back towards the 1.3260 highs in North American trade should be aggressively sold. More often than not, strong technical reversal signals in the Euro do not always play out as pretty as they should due to the currency pair’s high profile, but the signals are reliable and will sometimes generate real doubt before they actually play out. STRATEGY: SELL @1.3250 FOR AN OPEN OBJECTIVE; STOP 1.3350. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON THURSDAY.
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