Published On: Wed, Feb 8th, 2017

EURUSD bears get a signal

InstaForex

BackgroundEURUSD has been rallying all year so far. Until last Thursday, when it hit Fibonacci resistance at 1.0828. We posted a “Shooting Star” candle on that day, and we’ve seen a weaker tone since.

Yesterday, we broke channel support as seen on the daily chart below. Today we’ve seen further weakness, although for now we’re holding a short term Fibonacci support at 1.0544. If/when this breaks, look for 1.0530 next, then a move back to the early January low at 1.0341.

Management and risk description

Our initial risk on the trade is just over 50 pips. We will move the stop when the first target is hit.

Parameters

Entry: sell at market (currently 1.0650).

Stop: above 1.0700 initially.

Targets: 1.0530 and 1.0350.

Time horizon: 1-2 weeks.

Chart 1: Daily candlestick

 Chart 2: Weekly Bar chart

– Edited by Jack Davies

Clive Lambert is chief technical analyst at FuturesTechs 

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