The cross rate has been under some intense pressure over the past several months, with the market accelerating declines and dropping to record lows below 1.3000 thus far. However, it is not too often where we see daily, weekly and monthly technical studies all showing oversold at the same time, and this warns of the potential for a major upside correction over the medium/longer-term. As such, we like the idea of building a meaningful long position below 1.3000 with any additional setbacks seen limited. STRATEGY: BUY @1.2875 FOR AN OPEN OBJECTIVE; STOP 1.2775. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON TUESDAY.
FINISHED THE MONTH OF AUGUST +1.45%. PLEASE FEEL FREE TO CHECK OUT THE RESULTS AT http://new.dailyfx.com/files/pl8_31_10.pdf
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