[B]My picks:[/B] Short EUR/USD since 1.36
[B]Expertise:[/B] Global Macro
[B]Average Time Frame of Trades:[/B] 1 week
Yesterday, I shorted the EUR/USD at 1.36 but the market does not seem to share my bearish opinion in the euro dollar. Currently, I have a floating loss of 50 pips with a protective stop at 1.3750, a previous swing high. To some extent, a sudden change in investor’s sentiment towards more risk taking has been helping stocks and commodities to stage substantial rallies and the safe-haven US dollar seems to be giving back some of its previous risk-aversion gains. However, this week I expect a pullback on riskier assets, probably triggered by profit-taking. In addition, investor’s expectations that the world economy will emerge from this recession sooner than expected seem grossly overstated.