Sell below 1.2350. Stop loss 1.2391. Take profit 1.2259.
Reason for trading strategy:
EURUSD broke out of its ascending support-turned-resistance line where we look to sell on strength at 1.2350 (23.3% Fibonacci retracement, horizontal overlap resistance). We expect price to fall all the way to its support at 1.2259 (61.8% Fibonacci extension, 78.6% Fibonacci retracement). We have also identified another resistance at 1.2391 (76.4% Fibonacci retracement).
RSI (55) has broken out of its ascending support line and is being held down by a long term descending resistance line. Also, we are starting to see some bearish pressure in the Ichimoku cloud which contributes to our bearish bias.
Reason for trading strategy:
EURUSD broke out of its ascending support-turned-resistance line where we look to sell on strength at 1.2350 (23.3% Fibonacci retracement, horizontal overlap resistance). We expect price to fall all the way to its support at 1.2259 (61.8% Fibonacci extension, 78.6% Fibonacci retracement). We have also identified another resistance at 1.2391 (76.4% Fibonacci retracement).
RSI (55) has broken out of its ascending support line and is being held down by a long term descending resistance line. Also, we are starting to see some bearish pressure in the Ichimoku cloud which contributes to our bearish bias.