FINALLY ROLLING OVER AFTER FAILING ABOVE 1.4000; SELL @1.3965
Eur/Usd: Finally showing signs of exhaustion on Tuesday with the market rolling over after stalling out above psychological barriers at 1.4000. While it is too early to tell at this point if this is the start to a major USD bull run, there is certainly scope for additional setbacks towards the previous trend highs at 1.3740. The daily RSI has just now crossed down from overbought, while stochastics still reside in overbought but are now showing a negative cross. As such, will look for opportunities to sell into intraday rallies, in anticipation of a deeper drop back towards the 1.3700-1.3740 area. Strategy: SELL @1.3965 FOR A 1.3740 OBJECTIVE, STOP @1.4065. Stops to be trailed to cost on a break back below 1.3915. If trade triggers and 1.3915 not broken, position to be closed out at NY close (5pm NY time) on Tuesday. Recommendation to be removed if not triggered by NY close on Tuesday.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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