UBS made a nice call on Monday, recommending longs in EUR/USD, GBP/USD and AUD/USD. The Aussie trade just hit the 0.9910 target.
They target 1.2650 in EUR/USD and 1.5355 1.5650 in cable. It’s not an ideal time to buy right now with the euro at a session high but those looking to ride a hot hand might consider it on a pullback.
The rumor that everyone is buying is the Spanish bank bailout and an announcement may come before the end of the week. I expect that shortly after the headlines hit, all the people who bought the rumor will be selling the fact. No one is taking long-term EUR longs.
