FxWirePro: Adding new short positions to our EUR/USD short call

Our short call in Euro against the dollar is currently active, where we recommended going short in Euro against the dollar at 1.116 and at rallies with the stop loss around 1.15 and 1.16 area (later revised to 1.125 and 1.14). The euro dropped to as low as 1.085 against the dollar but currently has bounced back to test resistance around 1.11 area. The euro is currently trading at 1.109 against the dollar, buoyed by two main factors; US election and the Fed.

The Fed has restrained itself from a hike in November, which led to the weakness in the dollar. The major factor has been the US election uncertainties. Last Friday, Federal Bureau of Investigation (FBI) reopened the probe in Hillary Clinton’s email scandal and that jolted the market into pricing a greater possibility of a Donald Trump win. Even if Trump doesn’t win, the probe has added uncertainties to the political future of the country.

However, we suspect the weakness in the dollar to prove only temporary, hence we recommend to keep riding the short.

Trade idea:

Add additional or fresh short positions at current level with the targets and the stop losses mentioned above.

Those who are looking for intraday trading in the euro, can check out our newly built euro index, available here, fxwirepro.com.    Read more on the indexes here,
http://fxwirepro.com/currencyindex