Euro Cross Pick 03.23.10
Following up with the short EUR/GBP trade from the previous week, the pair nearly touched the 100-Day SMA at 0.8914, and I ended up pulling up the stop down to the 20-Day SMA (0.8829) from 0.9031 as the short-term decline appeared to be tapering off. However, the sharp rally on Friday pushed me out of the trade with a slight gain, and I will look to stay flat on the pair this week as the European Union is scheduled to hold a summit later this week. However, as the euro-pound fails to retrace the sell-off from the previous week, the pair looks poised to break lower, and I will certainly look to short the pair again as price action fails to hold above the 20-Day SMA at 0.9007.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.