EURUSD: Hold Short as Prices Hit First Target
Strategy: Short at 1.2595, Targeting 1.2364
We re-entered short EURUSD at 1.2595 expecting a corrective bounce in the wake of the EU leaders’ summit to yield back to the dominant trend. Prices have now met our initial objective with a close below 1.2442 to test the second soft target at 1.2364. The pair also appears to have completed a Triangle pattern, a setup indicative of bearish continuation in this scenario. We will continue to holding short, looking for either a close below 1.2364 or a bounce to retest the Triangle bottom to consider adding to the position. A stop-loss will be triggered on a daily close above 1.2746.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail email@example.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.