EURUSD: Stay Short on Test Above 1.40
Strategy: Short at 1.3829, Targeting 1.3482
Floating Profit / Loss: -235 pips
We sold EURUSD at 1.3829. Prices are now testing through our stop-loss at 1.4035, but a daily close above this level has not materialized warranting an exit. Furthermore, overt negative divergence on relative strength studies hints conviction behind the move higher is lacking, arguing against cutting the trade prematurely. As such, we will remain short, looking for prices to reverse lower though the end of the trading week to open the door for a push below rising trend line support to challenge 1.3750 and ultimately open the door for a decline to our soft target at 1.3482.
To discuss these strategies with other traders, please visit the Candlestick Forum
To receive future articles by email, please contact Ilya at firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.