Last Tuesday, technical analysts at CitiFX recommended EUR/USD longs targeting 1.37. They initiated the position at 1.3310 but are calling off the bet and taking profits at current levels (1.3420).
They cite a lack of follow-through in the euro and have assessed that the reasons they got into the trade have changed:
- US-German curve has drifted lower
- European economic data has moderated
- Spain/Italy stocks lower
- Spain/Italy yields higher
Normally, the moment you cut the trade and take profits, it soars but I give them credit for this call. The reasons they got into the trade changed so they got out, and managed to do it with 110 pips.
