SIDELINED FOR NOW BUT WAITING TO SELL IF KEY STOPS CLEARED
Eur/Usd: No compelling set-ups on Friday thus far, but the market already has the feel of a strong USD down day, with currencies pushing to fresh daily highs across the board. While we still hang on to our USD bull bias, it looks as though this could really be tested today as the major trades back towards the recent range highs. The key levels to watch over the coming session come in by 1.4140 and 1.4175 with a break above to accelerate gains to 1.4200 on what is sure to be some significant stop-hunting. Nevertheless, we think any rallies above 1.4200 should be well capped and we will look to sell by the 78.6% of the 1.4340-1.3750 move which comes in just over 1.4200 if given the chance. Strategy: SELL @1.4205 FOR AN OPEN OBJECTIVE, STOP @1.4355. Recommendation to be removed if not triggered by NY close (4pm ET) on Friday.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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