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EUR facing an uphill battle

EUR/USD moved in favour of this trade yet again as positioning ahead of this week’s ECB meeting ramps up.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
EUR
Source: Bloomberg

The pair declined significantly and even ventured below the $1.1500 handle in Friday’s trade, printing a low of $1.1460 (weakest since November 2003). EUR/USD has since recovered to $1.1553 but momentum is firmly to the downside and traders will be looking to sell the pair into strength. Last week, I trailed the stop on this trade to $1.1760, which left the trade in a profitable position. I am now looking to trail the stop on the trade even lower to $1.1630, which is where the November 2005 low is. I feel headline risk will ramp up out of Europe this week, given we also have Greek elections on January 25. As a result, I’d rather keep stops tight to avoid being caught out by any reversals.

 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.