Watching EUR/USD

EUR/USD continues to move lower and this is working out well for this week’s trade idea.

Source: Bloomberg

The Swiss National Bank’s (SNB) move to remove the peg on EUR/CHF, which was at 1.20 sent global fx markets into a spin. Additionally, the timing of the move implies the SNB has indirectly told markets that QE is on the way. EUR/USD slipped below support in the $1.175 level which has been in play over the last week. This saw momentum accelerate to the downside with the pair trading below $1.1600 at some point. In light of the move, I’m looking to trail the stop on this trade to $1.1760. Keep in mind the entry was at $1.1860 and therefore this puts the trade in a profitable position already.


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