The Euro to close the trading day at 1.2841 to the US Dollar, breaking above the upper boundary of the falling channel that had contained price action since mid-January. This suggests a near-term bottom is in place above 1.2453 and opens the door for a rally to 1.3350, an axis that has acted as support or resistance multiple times since November, 2006.
We first sold EURUSD at 1.5510 having identified a break of trend line support. We then added to the position at 1.3364 on a break of support/resistance level above 1.34. We will now exit the second portion of our overall exposure, booking 516 pips in profit. We will leave the remainder of the position open expecting the coming upswing to be a correction in the context of a larger down trend.
