I entered short EURUSD at 1.3526 on November 9 expecting the Eurozone debt crisis to continue to spread and moved my stop to 1.3231 last week after the pair met my secondary objective at 1.2872, aiming for the next target at 1.2586. Positioning now appears oversold and a corrective bounce is likely, particularly considering the likely onslaught of jawboning from officials heading into the January 29 EU summit. I will treat any recovery as an opportunity to add to the short position. Initial resistance is at 1.2933.
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