Euro Cross Pick 05.23.2011
After getting out of the long EUR/CAD trade from the previous week at cost, I am looking to get back in at a better price as the exchange rate bounce back from an overnight low of 1.3676. I have placed a small entry at 1.3762, the 10-Day SMA, and will target the 4/28 high (1.4102) again, with a stop at 1.3641, the 200-Day SMA, which has held up as solid support. Although the fundamental outlook for the euro remains fairly bearish, I really like the technical setup with the EUR/CAD, and will look to play the range-bound price action over the near-term.
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