EUR/USD Strategy: Holding Short From 1.3520 Is Favored
Trend Recognition | Nov 25, 2013 02:59AM ET
EUR/USD: 1.3557
Short-Term Trend: Weak uptrend
Outlook: Our short strategy from 1.3520 was elected last week as the euro rallied above the 1.3520 level. The wave structure still suggests a move down from here, but the trending conditions are now much more positive than they were a week ago. So, from the wave perspective, one has reasons to be short while from the trend-following perspective - to be long. Usually under such conditions it is best to be neutral. But, since we've just turned short, let's give it a try. To increase the confidence in the bearish case we need a decline below the last week's low at 1.3400.
Strategy: Holding short from 1.3520 is favored. Stop at 1.3720. Target at 1.2920.
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