EUR/USD: Market turning bearish again but we’ve read this book before!
The market loves to be bearish EUR/USD but recent history suggests that the bears will struggle to maintain momentum for any length of time. There were times in recent months when the reports out of the EZ were much worse than is currently the case and yet the EUR/USD is still trading above 1.30. The daily technical outlook (see chart) is still showing a modest up-trend and the interbank market reports that the sellers are mainly leveraged speculators whilst the buyers are more structural, real-money or Sovereign.
I prefer to play the bearish EUR card through the crosses such as EUR/GBP, or even EUR/JPY if you can find the right entry levels.