Trade Idea: EUR/USD – Sell at 1.3450 , Feb 19 2013

Candlesticks and Ichimoku Intraday | Written by Action Forex | Feb 19 13 07:29 GMT

EUR/USD – 1.3341

Most recent candlesticks pattern  : Shooting star

Trend                                                 : Near term down

Tenkan-Sen level              :1.3351
Kijun-Sen level                 :1.3350
Ichimoku cloud top              :1.3379
Ichimoku cloud bottom          :1.3347

Original strategy                              :

Sell at 1.3450, Target: 1.3310, Stop: 1.3485

Position: -
Target:  -
Stop:-

New strategy  : 

Sell at 1.3450, Target: 1.3310, Stop: 1.3485

Position: -
Target:  -
Stop:-

Euro’s near term sideways trading after last week’s anticipated resumption of recent decline is likely to continue, as long as Friday’s low of 1.3307 holds, risk of another corrective bounce to Friday’s high of 1.3394 remains, however, the upper Kumo (now at 1.3413) should limit upside and renewed selling interests should emerge around 1.3440-45 (50% Fibonacci retracement of 1.3577-1.3309), 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.