Forex Strategy: EUR/USD Short Trade Still Active
Dovish comments from Fed Chair nominee Janet Yellen weighed on the US Dollar but the trajectory of Fed policy – namely, looking to reduce stimulus by tapering QE asset purchases at some point in 2014 – still stands in stark contrast to that of the ECB. Recent comments from ECB officials suggest measures beyond this month’s rate cut are being discussed, tipping the policy outlook balance in favor of the Dollar.
I’m holding short at 1.3362, initially targeting 1.3148. A stop-loss is set to trigger on a weekly close above 1.3577.
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