A strategy of selling a bounce in EUR/USD is getting awfully crowded.
- Credit Suisse says to sell on a rally to 1.3801 with a target of 1.3675 and stop at 1.3872.
- Morgan Stanley says to sell rallies near 1.3870 and target 1.3650/20
- Barclays says to sell a rally toward 1.3850 with a target of 1.3650 followed by 1.3390. Stop above 1.40.
- BAML says to wait for a break of the 100-dma at 1.3740 before selling.
- ING likes selling around the 50dma at 1.3825 and target 1.3630 and 1.3616.
- BBVA says to sell at 1.3815 and 1.3840 while a break under 1.3740 exposes support at 1.3477.
Different strokes for different focus but there’s a surprising unanimity. Or maybe with so many traders trying to wait for a bounce to sell, the euro will just keep dropping.
What do you think?
