$1.3824 has been a pivot level on the intraday chart for a while and I believe this recovery today is a chance to sell. I view yesterday’s spike higher and lower as just a blip as once more the resistance band $1.3820/40 is acting as a barrier to gains.
The large top pattern on the intraday chart remains in place on the move below $1.3832 and there is a downside bias now to Euro/Dollar. I expect the $1.3748 key intraday low to be tested on the way towards the implied target from the top pattern at $1.3700.
I have placed my stop at $1.3855 (38 pips) which is above today’s high at $1.3846 and above the falling 200 hour moving average (currently $1.3854)
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