Trade idea background
EURUSD posted something akin to a Bearish Engulfing Pattern on Friday and ended the session sitting on the short-term trend support-line. This line was breached in Asian trade as it sits at 1.3574 today, but the start of European trade was greeted with a rally to 1.3592. We think this could be a selling opportunity as Marabuzo resistance at 1.3588 appears to be weighing, and short-term risk is now to the downside, but to be on the safe side we'll wait for a move back below 1.3574 to confirm.
Trade management and risk description
There is a low volume point on Friday's market profile at 1.3606 where we'll place our stop above. Once Friday's low at 1.3539 is broken, move the stop to entry to protect capital.
Trade idea parameters
Entry: Sell if we see weakness back through 1.3574.
Stop: 1,3610
Target: 1.3510 on half. 1.3410 on the balance.
Time horizon: 1-3 days.
Daily Candlestick chart
