Sell at 1.3650, Target: 1.3530, Stop: 1.3685
As the single currency has risen again after finding support around the upper Kumo, retaining our view that near term upside risk remains for recent upmove to extend further gain to 1.3627-30 (61.8% Fibonacci retracement of 1.3833-1.3295), however, as this move from 1.3295 is viewed as correction of early fall from 1.3833, reckon 1.3650-55 (100% projection of 1.3399-1.3560 measuring from 1.3490) would cap upside and bring another decline later. A break of indicated support at 1.3515-20 would suggest top is formed, bring test of previous support at 1.3490 but only below this level would revive bearishness and signal the rebound from 1.3399 has ended, bring further weakness to 1.3470, then 1.3435-40 but support at 1.3399 should hold.
In view of this, we are looking to sell euro on next upmove or on break of 1.3515-20. Above 1.3650-55 would extend the erratic rise from 1.3295 low to 1.3680 but reckon upside would be limited to 1.3700 and bring another decline later.
As the single currency has risen again after finding support around the upper Kumo, retaining our view that near term upside risk remains for recent upmove to extend further gain to 1.3627-30 (61.8% Fibonacci retracement of 1.3833-1.3295), however, as this move from 1.3295 is viewed as correction of early fall from 1.3833, reckon 1.3650-55 (100% projection of 1.3399-1.3560 measuring from 1.3490) would cap upside and bring another decline later. A break of indicated support at 1.3515-20 would suggest top is formed, bring test of previous support at 1.3490 but only below this level would revive bearishness and signal the rebound from 1.3399 has ended, bring further weakness to 1.3470, then 1.3435-40 but support at 1.3399 should hold.
In view of this, we are looking to sell euro on next upmove or on break of 1.3515-20. Above 1.3650-55 would extend the erratic rise from 1.3295 low to 1.3680 but reckon upside would be limited to 1.3700 and bring another decline later.
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