Trade Idea: EUR/USD — Sell At 1.3700

EUR/USD - 1.3616

Most recent candlesticks pattern : N/A

Trend : Sideways

Tenkan-Sen level : 1.3665
Kijun-Sen level : 1.3702
Ichimoku cloud top : 1.3696
Ichimoku cloud bottom : 1.3660

New strategy

Sell at 1.3700, Target: 1.3550, Stop: 1.3765

The single currency dropped below the Ichimoku cloud bottom yesterday and although price has recovered from 1.3586 (yesterday's low), upside should be limited to the Tenkan-Sen (now at 1.3665 and renewed selling interest should emerge around the Kijun-Sen (now at 1.3702) and bring another decline later, break of said support would extend weakness towards near term strong support at 1.3530-37. Having said that, a firm breach below there is needed to confirm entire correction from 1.3433 has ended at 1.3819 earlier, then weakness to 1.3500 and eventually retest of 1.3433 would follow.

In view of the above analysis, we are looking to sell euro on recovery. Above 1.3765 would risk 1.3795/00 but only break of resistance at 1.3819 would extend the rise from 1.3433 for a stronger retracement of early decline to resistance at 1.3840/51.

Based on ActionForex.com Technical Outlook