FxWirePro: Euro might extend gains toward 1.10 area against Dollar

Euro and Yen, among G10 FX pairs showing exceptional strength, despite a stronger Dollar across the board. While Yen's rise is no surprise given the risk aversion in the market and equity selloffs. However, Euro is up too, quite a significant amount (0.76%) today.

Risk aversion in the market, probably leading to squaring off short Euro positions, when high yield currencies such as Australian Dollar, New Zealand Dollar, and Pound are plunging due to fear over China hard landing.

Trade idea -

• Our call remains to buy Euro against Dollar @1.09 and at dips, targeting 1.15 area and stop loss around 1.05 area.
• However, we feel since the above call is medium term, Euro might plunge further in the near term, our interim call was for 1.06.
• So anyone looking to board our medium term call, this area might be suitable, even short term players can rise interim call and try to book profit around 1.10 area. For short term players, stop loss for target around 1.1 should not be below 1.07.