Forex Strategy 02.25.2013: Stay Short EUR/SEK and GBP/USD
I sold EURSEK at 8.7315 expecting Risksbank to keep rates on hold while the ECB leans toward easing in 2013 as recession lingers. I added to the position at 8.6409 as a corrective rebound launched in early January faltered. An Inverted Hammer candlestick warns of another possible bounce from support at 8.4234, which I will treat as an opportunity to further grow the position. A stop-loss will be triggered on a close above 8.6557.
I also continue to hold short GBPUSD at 1.5662. Prices have now surpassed my second objective at 1.5296 and I will continue to hold short, aiming for a break below 1.5132 (100% Fibonacci expansion) to expose the 1.50 figure and 1.4965 (123.6% Fib). The stop-loss has been revised to be triggered on a close above the breakeven point (1.5662).
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, please CLICK HERE
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
