Trade Idea: EUR/USD – Sell at 1.3150 , Mar 01 2013

Candlesticks and Ichimoku Intraday | Written by Action Forex | Mar 01 13 07:05 GMT

EUR/USD – 1.3065

Most recent candlesticks pattern  : Shooting star

Trend                                                 : Near term down

Tenkan-Sen level              :1.3069
Kijun-Sen level                 :1.3105
Ichimoku cloud top              :1.3124
Ichimoku cloud bottom          :1.3090

Original strategy                              :

Sell at 1.3225, Target: 1.3080, Stop: 1.3260

Position: -
Target:  -
Stop:-

New strategy  : 

Sell at 1.3150, Target: 1.3020, Stop: 1.3185

Position: -
Target:  -
Stop:-

As the single currency has retreated after yesterday’s initial rise to 1.3163, suggesting the rebound from this week’s low of 1.3019 has ended there and consolidation with downside bias is seen for a retest of this support but break there is needed to confirm recent decline from 1.3711 top has resumed and extend weakness to previous support at 1.2998. Having said that, loss of momentum should prevent sharp fall below 1.2978 (61.8% projection of 1.3319-1.3019 measuring from 1.3163) and reckon 1.2950 would hold from here.

In view of this, we are looking to sell euro on recovery, above the Kijun-Sen (now at 1.3103) would bring recovery to the upper Kumo (now at 1.3126) butu said resistsance at 1.3163 should limit upside and bring such a decline. Only a firm breach of said reisstance at 1.3163 would defer and risk retracement of recent fall to 1.3200-05 (61.8% Fibonacci retracement of 1.3319-1.3019), however, price should falter below 1.3245-50, bring another decline later.