Watch for EURUSD downside following failure at Marabuzo line
Most of Wednesday was dominated by a profit-taking reaction to three consecutive down days. Net movement was minimal, however, after the upside was reversed into the close after Monday’s Marabuzo line attracted sellers and EURUSD closed around the 13-day line.
This upside failure renews the negative bias and we look for the downside to develop further.
Management and risk description
Entry: Sell in 1.1950/55 area and at 1.1970.
Stop: 1.2018 bid.
Targets: 1.1923, 1.1889 and 1.1859.
Time horizon: intraday, closing 16:00 GMT.