EURUSD: Holding Short as Rebound Continues
Strategy: Short at 1.3073 (Avg), Targeting 1.2674
Floating Profit / Loss: +283 pips
We initially sold EURUSD at 1.3121 and added to the position at 1.3026. The pair sold off after putting in a bearish Harami candlestick pattern and we revised our objective to 1.2674 – the 50% Fibonacci expansion level – as well as trailed our stop-loss to breakeven (1.3073) after prices met the initial downside objective. Prices mounted a brisk recovery as expected last week and may continue to correct higher as oversold conditions are digested. We will treat gains as opportunities to add to the short position in the days ahead. A daily close above 1.2793 now sees significant resistance in the 1.2865-87 area, with a break above that targeting 1.2963.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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