The EUR was the Story but is it the Trade?

The story was the EUR today and that’s what drove the USD lower. I don’t believe that any optimism about Greece and a move from a 0.0% to 0.3% CPI is enough to lift the Eurozone and while this triggered an epic short squeeze, don’t jump on the EUR bandwagon just yet.

It’s really no different than when I warned not to sell or trust the USD move.

However there is the trader in me that is looking for ways to sell the EUR into this move since I see it unsustainable. The only way I would sell EUR would be against a stronger currency. We talked specifically about EUR/GBP weekly downtrend and the EUR/AUD distribution fade on the daily. On the other side of the EUR move today is the USD which could look like an interesting buy against the NZD/USD and USD/JPY. (The NZD had another disappointing dairy auction today, breaking the 700 support level on the price index.)

These are simply opportunistic observations after a move that could set up aggressive entries.

The AUD/JPY was the real winner for us today. I walk you through the details of that set up in this video.

Questions? Comments. Leave them here at the blog!

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  • Atriol

    I want know, How to trade in online can u explain me.

  • Mike Enwright

    I’m bullish the Euro. I’ve been long EUR/USD since Tuesday morning since taking the breakout at 1.0981. I scaled in yesterday at 1.1192 and I’m still in the trade. I’m looking for an initial target at around 1.1466(ish) resistance level (Where I’ll probably become cautious about the position and tighten stops but not necessarily exit the trade.)

    • Saravana

      may i know u r facebook and skype id’s?.

  • Mike, based on what I’d like to do with the daily, our analysis is overlapping in the way I love to see. While more momentum based traders are taking advantage of the EUR strength, it’s that very strength I am sitting on the sidelines during HOWEVER I am in agreement with where you see exhaustion because as the pair reaches for the 1.15 handle I will be buying put options in euro futures and I will be setting up a distribution fade short sell on the daily time frame.

    Thanks for sharing here.

  • Great article about Euro. I guess the currency will go down due to the weakening countries like Greece.