EURUSD: Looking to Add to Short Position
Strategy: Short at 1.4328, Targeting 1.3000
Floating Profit / Loss: +876 pips
We initially sold EURUSD at 1.4328 and revised our soft target to the 1.30 figure after the trade’s second objective was met last week. A Bullish Engulfing candlestick pattern at the bottom of a minor falling channel hints an upswing is ahead, with initial resistance at the 38.2% Fibonacci retracement level (1.3447). We will treat any further upside as corrective within the context of a larger down trend and monitor positioning for signs of exhaustion in the bull move to add to our short position.A stop-loss will be activated on a daily close above 1.3975.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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