Thursday, March 24, 2011

EURO Euphoria?

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