I’ve taken a small long position at 105.60 and I will look to start adding on dips if we can break above 106.30. My initial stop is 200 pips away so that’s why my position is only small to begin with.
This is a follow the money trade; I believe that all of the selling over recent days has been driven by the leveraged speculative community who are hoping to jump on a trend. I am also of the belief that China has a large interest to buy EUR/USD and that Japan may still have some aces up its sleeve in its attempts to get USD/JPY back into the mid 80’s.
As always with contrarian trades, I’m fighting against a strong trend but the risk reward makes it again worthwhile.
