EUR crosses: I still prefer the buy-dip strategy
- EUR/JPY obviously led the way and I feel some of the other crosses have catching up to do.
- EUR/AUD has formed a nice technical base and remember that we are trading close to historical lows. With EUR sentiment bouncing off catastrophically low levels, and with AUD sentiment waning amid falling commodity prices and worsening Chinese data, this remains the stand-out trade for me. I’m long, looking to add on dips for moves to 1.32+.
- EUR/CHF is also not far away from historic lows and the SNB is putting a base in! Why fight them? The market is very long of the safe-haven Swiss asset trade, and if even 50% of this is unwound EUR/CHF will be back above 1.30 very quickly.
- EUR/GBP is less clear-cut and best left along imho.
morning Sean,
would you not wait till ECB announcement this Thursday before taking action on these EUR crosses?
Definitely Danny, no need to rush into any trades at moment imho. Especially not when mkts are like today 🙁
cool. what are you thoughts for this coming Thursday? will there be any cuts and also negative deposit rate??
I’m definitely not an expert on ECB policy but I’d say that there will be no cuts as they wouldn’t have much of an impact
thanks Sean
Sean,should risk trade deteriorate, do you expect sharp fall for all Yen crosses? could be dangerous i think, but prefer to stand aside for now
Likewise Dok, I’ve got my core positions in USD/CHF and EUR/AUD but otherwise I’m struggling to get into the rhythm of this mkt. Best to wait it out until the magic returns 🙂