Strategy: Short at 1.2595, Targeting 1.2041
Floating Profit / Loss: +298 pips
We re-entered short EURUSD at 1.2595 and moved our stop-loss to breakeven (though still to be triggered only on a daily closing basis) after the pair met our second objective. Prices are now testing resistance in the 1.2290-2335 area marked by the 38.2% Fibonacci expansion and the May 31 low. A break higher exposes 1.2442. We see the bounce as corrective and will continue to hold short for now, looking for the upswing to yield an opportunity to add to the short position. Near-term support lines up at 1.2148, the 50% Fib expansion.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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