EURUSD: Hold Short Below 1.4535
I sold EURUSD three weeks ago at 1.4328 expecting escalation in the EU debt crisis to be compounded by a downward revision in investors’ expectations of global economic growth that sets off risk aversion and drives the US Dollar broadly higher on safe-haven demand. While I certainly didn’t foresee the degree of volatility that would ensue, the overall trajectory seems to be working in favor of the trade and I will remain short, initially targeting a close below 1.3975. A stop-loss will be triggered on a daily close above 1.4535.
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