EUR/USD/Flows and Orders

EUR/USD: Susceptible to short-squeeze

Interesting that two investment banks put out this little note at pretty much the same time. They say most of the selling today has been from leveraged players, especially after the Spanish downgrade, and the pair could be in danger of a short squeeze over the next few hours. I’d expect stops to now be building above 1.2900.

  1. I look to fade the stop hunt into the 2930s, stop at 2950. I don’t see any fundamental reason for the sharp upmove and IFR is reporting that this mainly because of cross-buying. The risk-reward ratio is also attractive.

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