EURUSD: Preparing to Re-Enter Short Position
Strategy: Pending Short
We re-entered short EURUSD at 1.2595 and addedto theposition at 1.2274 for an average entry price of 1.2434. The trade was closed out with a small gain (36 pips) earlier this week as prices closed above our revised stop-loss at 1.2389. Prices are now edging lower after putting in a Spinning Top candlestick below falling trend line resistance set from mid-June, a barrier reinforced by the 50% Fibonacci retracement at 1.2394. Initial support at the 38.2% Fib (1.2311) appears to have been narrowly breached and sellers are now aiming to challenge rising channel support at 1.2214. We will look for a daily close below this boundary to re-initiate short.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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