EURUSD: Remain Short as Down Trend Accelerates

[B]My picks:[/B] Remain short EURUSD
[B]Expertise:[/B] Global Macro, Classic Technical Analysis
[B]Average Time Frame of Trades:[/B] 1 week - 6 months

Last week, the EURUSD followed up a Dark Cloud Cover bearish reversal formation with a confirmed break of support at the lower boundary of a rising channel that had confined the latest upswing from late April. I entered short at 1.3936 initially targeting the previous swing bottom below 1.30. Importantly, this will be a “soft” target, meaning I will look for this to be the next important juncture but refrain from setting a firm take-profit order at this level, looking for the pair to sink substantially lower to break below the double bottom at 1.2454. A stop-loss will be activated on a daily close above the 06/03/09 wick high at 1.4340.

For detailed analysis of all the major currency pairs, please see my weekly technical outlook report.