The market is again seemingly intent on re-building EUR shorts, once again failing to learn its lesson from last week’s vicious spike higher. We are entering a period of reduced liquidity when most traders will be trying to reduce positions rather than build fresh ones, and I’m not looking any further than this for my trade logic.
- EUR/GBP: Still my preferred play and I’m looking for a move back above .75 in coming weeks;
- EUR/CAD: Big mover in recent days and moves like this should never be ignored in December.
- EUR/USD: With the Fed hike fast approaching it’s unwise to be overly short USD but if the EUR crosses turn bid then EUR/USD is more likely to edge higher again perhaps with the occasional stop-loss driven spike.
- EUR/JPY: Probably only pair that I would not be comfortable with a long position. I’m leaving this one alone.
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