Trade Idea: EUR/USD — Hold Long Entered At 1.4020

EUR/USD - 1.4067

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level : 1.4102
Kijun-Sen level : 1.4155
Ichimoku cloud top : 1.4202
Ichimoku cloud bottom : 1.4102

Original strategy : Bought at 1.4020, Target: 1.4170, Stop: 1.3960

New strategy: Hold long entered at 1.4020, Target: 1.4150, Stop: 1.3995

Although the single currency fell to as low as 1.4007 yesterday, euro has rebounded from there partly due to active cross-buying versus Japanese yen and as long as said support level holds, mild upside bias remains for correction of the near term decline to the Tenkan-Sen and Ichimoku cloud bottom (now both at 1.4102), break there would confirm a temporary low has been formed and bring stronger recovery towards the Kijun-Sen (now at 1.4155) but Ichimoku cloud top (now at 1.4202) should cap upside for the time being

In view of this, we are holding on to our long position but with a smaller profit target at 1.4150. Below said support would extend this week's decline from 1.4305 top towards 1.3979 (1.236 times projection of 1.4305-1.4130 measuring from 1.4195) but chart support at 1.3911 (also below 1.618 times projection at 1.3912) should remain intact.

Based on ActionForex.com Technical Outlook