Strategy: Pending Short at 1.5850

Prices took out rising trend line support set from the June 1 low, hinting at deeper losses ahead. Risk/parameters argue against entering a trade at current levels however and we will opt to establish an entry order to enter short at 1.5850 in the event of a corrective upswing. If the setup is triggered, a stop-loss will be set to activate on a daily close above the 38.2% Fibonacci retracement at 1.5911 while the initial objective will be set at 1.5788, the 50% level.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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