 - EconoTimes)
In July, we suggested going short on the euro and that is largely due to the UK referendum. While, it was well expected that the pound would bleed, which it did, we though the euro is in for bleeding too. A theory that we believed then and we continue to believe that the Brexit would hurt the European Union and the Eurozone much harder over the longer term than it would hurt the United Kingdom. While UK’s trouble would be economic, Eurozone and the European Union’s problem would be existential.
In July, we suggested in our article named, “FxWirePro medium term outlook: Euro may go for a test of parity against dollar” available at http://www.econotimes.com/ , that our readers should short the euro at then current price at 1.116 with the stop loss around 1.15 and 1.16 area. The target was given just above the parity at 1.01 area.
We, still stand by this call as the focus have shifted towards Brexit and maybe not as much as the pound but the euro is taking a hit too. The call is now in the money as the euro is currently trading at 1.087 area.
We would like to revise our previous two stop loss around 1.125 and at 1.14. We would also like to add some interim targets; 1.076, 1.052, 1.032 and would add another target at the end; 0.99
