Trade Idea: EUR/USD - Buy Again at 1.4035

Candlesticks Trades | Written by ActionForex.com | May 29 09 14:58 GMT |

EUR/USD - 1.4097 Most recent candlesticks pattern : N/A Trend : Up Tenkan-Sen level : 1.3964 Kijun-Sen level : 1.3964 Ichimoku cloud top : 1.3885 Ichimoku cloud bottom : 1.3737 Original trading strategy : Long position at 1.3920 met target at 1.4020 New strategy is : Buy at 1.4035, Target : 1.4140, Stop : 1.3980 The single currency found renewed buying interest at 1.3906 yesterday in New York session as expected (our long entry level was 1.3920 and got a fill there), then euro rallied today and met our target at 1.4020 (making another 100 points profit). Once resistance at 1.4051 was penetrated, the single currency gathered momentum and rallied to a fresh 2009 high of 1.4151 before easing. Looking at the 4-hour chart, the bullish cross-over of Tenkan-Sen above Kijun-Sen provided a strong buy signal, suggesting the upmove from 1.2457 remains in progress for gain to 1.4167 (100% projection of 1.2457 to 1.3739 measuring from 1.2885), however, upside should be limited to 1.4180 (61.8% projection of 1.3425 to 1.4051 measuring from 1.3793) and reckon 1.4216, being 1.618 projection of 1.3793 to 1.3984 measuring from 1.3906, would hold today. In view of this, whilst we are still looking to buy euro on pullback but one must not get overly bullish on next rise and should take profit when price approaches 1.4180. On the downside, expect renewed buying interest to emerge around 1.4028 (50% Fibonacci retracement of 1.3906 to 1.4151) and support at 1.3984 (previous resistance turned support) should continue to hold for eventual rally to abovementioned target. Loss of 1.3984 would suggest a temporary top is in place and retracement to 1.3950 and 1.3910 would follow but euro’s downside would be limited to 1.3850/60.