The euro rallied today on "optimism European policymakers will be able to control a political and debt crisis in Portugal". Now why would you rally on the ability to control a political and debt crises. That is like saying "I just cut off 3 fingers but I am confident I can control the bleading, hurray!!!" I expect the joy to be short lived which should lead to a drop in the euro in the near term. In fact, i really like the EUR/CHF short here. Take a look. Shorting EUR/CHF at 1.2870 stop of 1.3010 and an easy target of 1.250
2 comments:
I think the ECB will raise the rate once, however it is diffcult to argue that a series of rate hikes will follow given the current market environment.
That is why I crossed it with the CHF so that any positive out of the euro will be absorbed into the chf too. Still very bearish on this pair.
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