EURUSD has now conclusively broken the long-term bullish trend line that guided price action higher since August of 2007, issuing a Long Black Candle. We look for a short retracement (already underway) to enter short aiming for the decline to accelerate.

Updated Strategy:

1. Short EURUSD in the 1.5540-1.5510 area
2. Set stop-loss at 1.5667
3. Set initial target at 1.5280 **


** note: we will use a soft target this time, meaning we will look for 1.5280 to be the next important juncture but will not set a firm order to exit at that level as we expect EURUSD downside to extend substantially further.


Ilya

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