Last Tuesday, technical analysts at CitiFX recommended EUR/USD longs targeting 1.37. They initiated the position at 1.3310 but are calling off the bet and taking profits at current levels (1.3420).

They cite a lack of follow-through in the euro and have assessed that the reasons they got into the trade have changed:

  1. US-German curve has drifted lower
  2. European economic data has moderated
  3. Spain/Italy stocks lower
  4. Spain/Italy yields higher

Normally, the moment you cut the trade and take profits, it soars but I give them credit for this call. The reasons they got into the trade changed so they got out, and managed to do it with 110 pips.