Short EURUSD looks sensible here.
This drawing, called “Rugby” won
the 1928 Olympic gold medal in
the Drawings and Watercolors category.
There were Olympic medals for
art, literature, architecture and
music from 1912 to 1948
EURUSD Looks High
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BD
by Brent Donnelly
Current Views
Short EURUSD @ 1.0950
Stop loss 1.1126
Take profit 1.0711
June 28, 2023
EURUSD looks high
EURUSD looks high. Here it is vs. rates:
EURUSD vs. Germany/US 2, 5, and 10-year rate differential
And vs. gold:
EURUSD vs. gold
Chart-wise it’s been going nowhere for months and we are near enough to the top of the range:
EURUSD has been 1.05/1.11 since late 2022
Today is corporate month end, GBP longs are crowded, oil can’t find a bid, the EU data is horrendous, USDCNH is making new highs, and there is nothing particular to like about EUR. There seems to have been a EUR buy flow from London open until around 930 a.m. NY over the past few days and that has widened the dislocation between EUR and rate differentials that started around the ECB meeting mid-month.
I like short EURUSD here with a stop at 1.1116 looking for 1.0711. Nice and simple. Risking 176 to make 239 with the intention to move the stop down if we get below 1.09.
Final thoughts
Riksbank tonight. Strap in for some zippy vol in EURSEK.
Have an Olympic day.
good luck ⇅ be nimble
The 1928 Olympic gold medal for Paintings was won by Isaac Israëls for this painting called “Cavalier Rouge” and one of Isaac’s self-portraits.
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