EURUSD: Short Triggered on Wedge Break
Strategy: Short at 1.4328, Targeting 1.4172
As we noted earlier, the move above the falling trend line connecting major highs since late April may have been a false breakout, with prices reversing sharply lower from horizontal resistance at 1.4537 and forming a pronounced Bearish Engulfing pattern. We have now seen follow-through on a break below the bottom of a Rising Wedge set from the July 12 low and will attempt a small short position for an initial target at 1.4172. A daily close below that level will open the door for a more aggressive objective at 1.3975. We will scale up to full position size on a break of the latter boundary. A stop-loss will be activated on a daily close above 1.4537.
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