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EURUSD: Continue Holding Short

Last week, I sold EURUSD at 1.3840 after prices broke out of a rare Diamond Top downward reversal formation having put in a bearish Dark Cloud Cover candlestick pattern below the 1.42 figure, a juncture that had acted both as a significant upside and downside barrier since the second half of 2008. The pair has done little since, with prices tracking sideways ahead of the cosely-watched Federal Reserve rate decision later this week. I will remain short, initially targeting the August swing top at 1.3317. A stop-loss will be activated on a daily close above 1.4085.

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