EURUSD: Adding More to Short Position
Strategy: Short at 1.4328, Targeting 1.3000
Floating Profit / Loss: +559 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. Prices have now produced a Bearish Engulfing candlestick pattern below critical resistance at the 1.39 figure, hinting the correction played out over the past two weeks is over and the larger down trend ready to resume. We will grow the short position here by the same size as the first increase in our exposure at 1/5 of the original trade. Near-term support lines up at 1.3582, the 23.6% Fibonacci extension level. As before, 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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