FxWirePro: Buy euro against dollar targeting 1.226 in short term

The euro is slowly grinding higher after declining to 1.183 area and is currently trading at 1.199 against the dollar. Despite the looming FOMC monetary policy tomorrow, we expect the correction for the euro to be over and expect the single currency to grind higher focusing on the next monetary policy from the European Central Bank (ECB). ECB has signaled that it would announce the latest adjustment to its monetary policy at the next meeting on 26th October.

We expect the speculation towards ECB meeting would remain positive for the euro, even if it dips on FOMC monetary policy. In addition to that, we expect the upcoming German election outcome to be positive for the euro as well.

Hence, we would like to recommend to our readers to buy euro at the current rate of 1.199 and at dips with a target around 1.226 and stop loss around 1.182 area for the short term.