LOOKING TO FADE RALLIES ABOVE 1.4000
Eur/Usd: Any pullbacks on Monday have been ignored into Tuesday with the market rallying quite impressively back towards Monday’s 1.3965 highs. However, our overall bias remains firmly bearish and we continue to favor selling into rallies in anticipation of deeper setbacks over the coming weeks. The market has been consolidating over the past several days and a fresh lower top is now sought out to be confirmed on a drop back below 1.3750. While we do see room for additional gains today beyond Monday’s 1.3965 highs, any push above 1.4000 is not viewed as sustainable and we will therefore look to sell into rallies towards the recent consolidation highs. Strategy: SELL @1.4010 FOR AN OPEN OBJECTIVE, STOP @1.4185. Recommendation to be removed if not triggered by NY close (5pm ET) on Tuesday.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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