Euro Cross Pick 02.09.2011
After getting stopped out of the USD/CHF short position from earlier this week, it appears I have gotten ahead of myself as we see price action slip to a low of 0.9592, but I will look for some confirmation before trading the pair again as it breaks out of the downward trend from back in December. In turn, I have turned my attention to the EUR/GBP as we see a near-term correction plays out, but I expect the pair to push lower going forward as investors speculate the Bank of England to gradually normalize monetary policy later this year. As the rebound in the EUR/GBP tapers off ahead of the 100-Day SMA at 0.8557, I may test the waters and short the EUR/GBP at market if we see price action close below the 20-Day SMA at 0.8496, and will look for a test of the monthly low at 0.8388, with a tight stop at 0.8514, the 10-Day SMA.
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