Selling Opportunities in EUR/USD - Sold @ 1.06729 Tue, Jan 3, 2023 11:15am. Stop Moved to Break-Even Tue, Jan 3, 20:14pm. #2 Sell Limit Order @ 1.0610 - Wed, Jan 4, 13:07pm

EUR/USD has been recovering from the September 28, 2022 low of 0.9536 before hitting a pocket of resistance at 1.0737 on Dec. 15, 2022. Since then, price actions have been sidelining until we saw another rally attempt on the last trading day of 2022. If the near-term support line seen in the 60-hours breaks, it may cause follow-through selling. If so, there is a potential for a more sustained decline towards the 1.02 handle. Recent price actions suggest the risk/reward outlook has shifted in favor of selling. 

TRADE IDEA

Sold @ 1.0673 - Tue, Jan 3, 11:05am

Stop @ 1.0755. Stop Moved to Break-Even Tue, Jan 3, 20:14pm.

Target @ 1.0250

EUR/USD fell sharply overnight, confirming the bias to the downside and potentially ending the counter-trend rebound from last September 28 low of 0.9536. This means the rally from that low may well had peaked at 1.0737 on December 15 2022. If so, the downside potential is huge. 

EUR/USD hit a low of 1.0520 last night in NY trading before profit-takings set in which resulted in a rebound to 1.0597. In the 60-minutes time frame (see chart), this rebound may yet extend higher later in the day.

Incidentally, the 50% of the fall from 1.0713 to 1.0520 is at 1.0616. Likewise, if this rebound unfolds as a ABC rebound, the equality distance of this rebound is at 1.0615. Taken together, this confluence of Fibonacci ratios suggests the probability of this rebound targeting these levels are good. 

TRADE IDEA

#2 Sell Limit @ 1.0610 - Wed, Jan 4, 13:07pm

Stop @ 1.0720.

Target: TBA