EURUSD: Doji Candle Hints Rally Fading
Strategy: Short at 1.4328, Targeting 1.3000
Floating Profit / Loss: +516 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. I added to the trade after the pair produced a Doji candlestick below resistance at 1.3681, the 38.2% Fibonacci retracement level, but a reversal did not materialize. Rather, the pair broke higher to challenge the 50% Fib at 1.3847 and is now showing another Doji at this boundary. We will opt not to add further to the position at this point, waiting for a bit of additional confirmation on the close of the current candle before compounding exposure. As before, a stop-loss will be activated on a daily close above 1.3975.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail firstname.lastname@example.org. Follow me on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.