EURUSD: Looking to Add to Short on Bounce
Strategy: Short at 1.2595, Targeting 1.2146
Floating Profit / Loss: +366 pips
We re-entered short EURUSD at 1.2595 and moved our stop-loss to breakeven after the pair met our second objective. The pair now consolidating near the bottom of a falling channel set from late May and we will continue to hold short, targeting a daily close below the 50% Fibonacci expansion at 1.2146. A Bullish Engulfing candlestick pattern warns of a possible upswing ahead, which we will treat as an opportunity to add to the short position.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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