Forex Strategy: Looking to Re-Enter EUR/USD Short
Looking past near-term volatility triggered by conflicting jawboning efforts from central bank officials, the trajectory of Fed policy – namely, looking to reduce stimulus by tapering QE asset purchases at some point in 2014 – stands in stark contrast to that of the ECB.
A shallow rebound from November lows mounted after prices were sent downward having tested the boundaries of the 5-year down trend now looks to be running out of steam. I will look for technical confirmation on a weekly close below 1.3524 to enter short, targeting 1.3148 initially.
New to FX? START HERE!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.