22 Dec 2014
Sell EUR/USD again on upticks – Growth Aces
FXStreet (Barcelona) - The Growth Aces Team notes that EUR/USD will likely remain under pressure due to the divergence between Fed and ECB’s monetary policies, further suggesting selling on upticks while targeting 1.2180 levels for the pair.
Key Quotes
“Hawkish comments from the Fed’s officials (except from Kocherlakota) strengthened the USD. The EUR/USD broke below 28-month low on Friday, in line with our expectations. The rate fell to 1.2220 (new 2104 low).”
“Today the USD gave back some of Friday’s gains and the rate did not reach the target of our short position at 1.2180. The EUR/USD rose to the lowered stop-loss level of our short position, but we took quite significant profit on the position opened at 1.2440 and closed at 1.2260.”
“The EUR/USD will likely remain under pressure of divergences between monetary policies of the Fed and the ECB. The market is becoming more convinced that the ECB will announce sovereign bond buying or quantitative easing at their January 22 meeting and is pricing in the start of the Fed tightening cycle for June.”
“We are looking to get short again near 1.2360. If our sell order is filled, the target will be at 1.2180.”
Key Quotes
“Hawkish comments from the Fed’s officials (except from Kocherlakota) strengthened the USD. The EUR/USD broke below 28-month low on Friday, in line with our expectations. The rate fell to 1.2220 (new 2104 low).”
“Today the USD gave back some of Friday’s gains and the rate did not reach the target of our short position at 1.2180. The EUR/USD rose to the lowered stop-loss level of our short position, but we took quite significant profit on the position opened at 1.2440 and closed at 1.2260.”
“The EUR/USD will likely remain under pressure of divergences between monetary policies of the Fed and the ECB. The market is becoming more convinced that the ECB will announce sovereign bond buying or quantitative easing at their January 22 meeting and is pricing in the start of the Fed tightening cycle for June.”
“We are looking to get short again near 1.2360. If our sell order is filled, the target will be at 1.2180.”