Forex Analysis: EURUSD Yields Short Trade Setup
Strategy: Pending Short at 1.2982, Targeting 1.2826
Prices completed a bearish Three Inside Down candlestick pattern below falling trend line resistance set from May 2011 and broke through upward-sloping support set from the June swing bottom, hinting a significant reversal is at hand. Risk/reward considerations argue against entering short at current levels however. With that in mind, we will set up a short entry order to trigger at 1.2982. Once the position is open, the initial objective will be the 23.6% Fibonacci expansion (1.2826) and a stop-loss set to activate on a daily close above 1.3138.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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