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Forex Strategy: Euro Short Held vs. US Dollar

Ilya Spivak

Last week, the ECB said it intends to keep rates at current or lower levels, setting their bias as firmly dovish, while the Fed appeared on track to begin “tapering” QE in September. That seems likely to shift relative yields in favor Dollar. Prices broke support at a rising trend line set from mid-July, acting as a trigger for a short position from 1.3270. My initial objective is 1.3188. A stop-loss will be activated on a daily close above the July 31 high at 1.3344.

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