Trade Idea: EUR/USD – Sell at 1.3415 , Feb 18 2013

Candlesticks and Ichimoku Intraday | Written by Action Forex | Feb 18 13 07:19 GMT

EUR/USD – 1.3338

Most recent candlesticks pattern  : Shooting star

Trend                                                 : Near term down

Tenkan-Sen level              :1.3341
Kijun-Sen level                 :1.3343
Ichimoku cloud top              :1.3418
Ichimoku cloud bottom          :1.3375

Original strategy                              :

Sell at 1.3480, Target: 1.3380, Stop: 1.3515

Position: -
Target:  -
Stop:-

New strategy  : 

Sell at 1.3415, Target: 1.3310, Stop: 1.3450

Position: -
Target:  -
Stop:-

Despite last week’s anticipated resumption of recent decline, as the single currency rebounded after falling marginally to 1.3307 on Friday, suggesting consolidation above this level would take place and another corrective bounce to 1.3365-70 and possibly Friday’s high of 1.3394 cannot be ruled out, however, the upper Kumo (now at 1.3418) should limit upside and bring another decline later. A break of said support would extend recent decline from 1.3711 top for weakness to 1.3285-90 but loss of downward momentum should prevent sharp fall below 1.3250, risk from there is seen a strong recovery later.

In view of this, we are looking to sell euro on recovery. Only above 1.3455-60 would defer and risk a stronger rebound to 1.3485-90 but still reckon resistance at 1.3520 (with a shooting star) should continue to cap euro’s upside, bring another decline later this week.