Analysts at Bank of America Merrill Lynch say to sell EUR/USD on a break of the January low of 1.3548 with an initial target of 1.3349 and a stop at 1.3650. A secondary target is 1.3144.
EUR/USD broke the 100-day moving average but has rebounded to 1.3566 in the latest trade. The low so far is 1.3556.
That’s the kind of trade I like. There’s some momentum along with technical and fundamental reasons to sell. The reason to worry is that EUR/USD has been such a painful chop for the last two months and that’s an easy trade to get shaken out of.
