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.
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