Strategy: Short at 1.2556, Targeting 1.2398
Floating Profit/Loss: -27 pips
We sold EURUSD at 1.2556 as prices put in a Bearish Engulfing candlestick pattern below resistance at the top of a Rising Wedge pattern carved out since late July. Prices are now rebounding to retest the Wedge top but the overall bearish setup remains intact absent a daily close above the Engulfing pattern’s high (1.2588, our stop-loss) and we will continue to hold short. The initial target remains at 1.2398.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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