Trade Idea: EUR/USD, Hold Long Entered at 1.3730, Stop Raised

EUR/USD - 1.3778

Most recent candlesticks pattern: N/A

Trend: Sideways

Tenkan-Sen level : 1.3710
Kijun-Sen level : 1.3630
Ichimoku cloud top : 1.3603
Ichimoku cloud bottom : 1.3483

Our trading strategy is: Hold long entered at 1.3730, Target :1.3840, Stop-loss : 1.3705

Although price has retreated after rising to 1.3837, as long as support at 1.3722 (previous resistance turned support) holds, mild upside bias remains for recent resumption of upmove to extend towards 1.3856 (61.8% Fibonacci retracement of the entire decline from 1.4720 to 1.2457), however, as recent rally is starting to lose upward momentum, sharp move beyond this level might not be repeated today and price should falter well below 1.3942 (61.8% Fibonacci projection of 1.2885 to 1.3722 measured from 1.3425). It is getting more likely that we may see a strong pullback to take place tomorrow.

Therefore, whilst we are still trading from long side for one more rise, please make sure to take profit on the next rally as a strong retracement might take place later.
On the downside, if price drops below Tenkan-Sen (currently locating at 1.3710) would defer this bullish view and minor correction to 1.3665/70 would follow, however, renewed buying interest is expected to emerge again above the Kijun-Sen (now at 1.3630) and top of Ichimoku support area, then the single currency shall stage another upleg tomorrow or early next week.

We have just entered the long position at 1.3730 at 13:00GMT and we are still looking for 1.3840 target but we have raised the stop-loss from 1.3680 to 1.3705.

Based on ActionForex.com Technical Outlook