Trade Idea: EUR/USD — Sell at 1.3805 O.C. O. Buy at 1.3495

EUR/USD - 1.3668

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 1.3664
Kijun-Sen level : 1.3806
Ichimoku cloud top : 1.4024
Ichimoku cloud bottom : 1.3938

Original strategy :

Sell at 1.3800, Target: 1.3600, Stop: 1.3865

New strategy :

Sell at 1.3805, Target: 1.3600, Stop: 1.3870

O.C.O. Buy at 1.3495, Target: 1.3700, Stop: 1.3430

Although the single currency recovered after holding above Friday’s low at 1.3585 and further consolidation would be seen, upside should be limited to 1.3750/60 and renewed selling interest should emerge around the Kijun-Sen (now at 1.3806), bring another decline later. Break of said support would extend recent decline towards 1.3495/00, however, loss of near term downward momentum should prevent sharp fall below there and reckon 1.3434 (1.236 times projection of 1.5145 to 1.4218 measuring from 1.4580) would hold, bring a strong rebound later this week.

In view of the above analysis, whilst we are still looking to sell euro on recovery for one more fall, we would also venture long on next decline. A firm breach of resistance at 1.3851 would suggest a temporary low is possibly formed and risk retracement to the Ichimoku cloud bottom (now at 1.3936).

Based on ActionForex.com Technical Outlook