A break below trend line resistance triggered my short EUR/USD position and is on track to hit my target of 1.2500. Considering taking partial profits here as the pair has been in a five day decline, but still see downside risks as banking concerns have re-emerged following comments from Nobel Laureate Joseph Stiglitz. However, I don’t think that we will see the level of panic that was seen earlier in the year and any sharp moves based on event risk could be viewed as opportunities to fade the move. That said I still see my target of 1.2500 being hot and will remain short the pair.
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