EURUSD: Prices Inching Toward Channel Resistance
Strategy: Short at 1.4881, Targeting below 1.3404
Weekly Profit / Loss: -116 pips
Total Profit / Loss: +1186 pips
We initially sold EURUSD at 1.4881. The pair has done very little for nearly five weeks with prices locked in a narrow consolidation range above 1.35. Significant resistance is now in sight, marked by the upper boundary of a steep falling channel set from the swing high in early December (now at 1.3731), with a break higher beyond this boundary would expose the 1.38 figure. We continue to see any move higher as corrective and will remain short, looking for the re-emergence of bearish momentum to take prices below 1.3404. A stop-loss will be activated on a daily close above 1.4251.
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