EURUSD: Candles Hints Selloff Ready to Resume
Strategy: Short at 1.3073 (Avg), Targeting 1.2244
Floating Profit / Loss: +476 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 and we have subsequently revised the stop-loss and target downward to lock in some gains. Prices have now put in a bearish Evening Star candlestick pattern on a retest of support-turned-resistance in the 1.2623-65 area at the mid-January swing bottom, hinting renewed selling is ahead. We remain short and look for a daily close below rising trend line support set from late May as confirmation to consider adding to the position. A stop-loss will be activated on a daily close above 1.2674. Our soft objective remains at 1.2244.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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