Strategy: Pending Short
Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at 1.3460, hinting a deeper pullback may be ahead. Risk/reward considerations argue against entering short however with the next layer of support just ahead at 1.3321 at the February 9 high. As such, we will remain on the sidelines for now. A daily close below 1.3321 initially exposes the 1.30 figure. Alternatively, a break above 1.3460 targets 1.3662.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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