[B]My picks:[/B] Short EURUSD Since 1.3950
[B]Expertise: [/B]Global Macro
[B]Average Time Frame of Trades:[/B] 1 week
Yesterday, I took a short position in the EURUSD at 1.3950. With 1.40 on sight I’m particularly worried about the possibility of a short squeeze since nearly 64% of traders are short EURUSD, according to the FXCM SSI which measures the positioning of thousands of retail traders. However, I have a protective stop at 1.4350 and I plan to hold this position until the FOMC rate decision tomorrow at 2:15 PM. Indeed, the absence of a clear trend combined with rising exchange rate volatility makes it very difficult to make any short-term prediction for the EURUSD. Yet, a recent change in 2-year interest rate differentials in favor of the US dollar is likely to bring the EURUSD under selling pressure.