EURUSD: Second Objective Hit on Short Trade
Strategy: Short at 1.3073 (Avg), Targeting 1.2481
Floating Profit / Loss: +496 pips
We initially sold EURUSD at 1.3121 and added to the position at 1.3026. The pair sold off after forming a bearish Harami candlestick pattern at trend line resistance and we revised our stop-loss and target levels after the decline met our initial objective. Prices have now closed below our second downside threshold at 1.2674 and we will revise the stop-loss further to be triggered on a daily close above 1.2865, aiming for the next downside barrier at 1.2481. Importantly, emerging positive RSI divergence warns that the risk of a corrective upswing is rising.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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