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EUR/USD 2/11/2014 - A Consolidation Trade Setup

This is my first post on WhoTrades. Hope you enjoy.


EUR/USD has been bullish since mid-July, and this overall uptrend has not reversed. It has however entered a period of consolidation since November, mostly holding below 1.3850, with a spike almost reaching 1.39. 

Sideways trading continued, with no signs of continuation just yet. After Yellen's testimony today (2/11), the market decided to cap EUR/USD below 1.3690. 
The stochastic hints at possible overbought condition with today's bearish candle triggering a crossover. While not necessarily a sign of a reversal to the uptrend since July, this could indicate some short-term range-bound decline. 
The market has been making some consecutive lower lows since Dec. If we anticipate another one, we should also consider support/resistance pivot around 1.34. That could be a first target. 
A break above a previous high and 1.3750 however opens up the 1.38 and higher ground again. So consider a stop above that.