EURUSD: Pullback a Chance to Add to Short
Strategy: Short at 1.4328, Targeting 1.3000
Floating Profit / Loss: +1049 pips
We initially sold EURUSD at 1.4328 and trailed our stop-loss to breakeven after the pair met our initial objective, revising our soft target to 1.3416. The pair has now met that objective and we will establish a new soft target at the 1.30 figure. The stop-loss will be trailed lower to be activated on a daily close above 1.3975. A Bullish Engulfing candlestick pattern at the bottom of a minor falling channel hints an upswing is ahead, with initial resistance at the 23.6% Fibonacci retracement level (1.3476). We will treat any forthcoming advance as an opportunity to add to our short position.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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