Morgan Stanley today entered into a short position. Initial target 1.2700. Stop 1.3500.
The bank says
“EUR has strengthened in recent sessions, buoyed by investment interest from Asia, robust demand in euro-area debt auctions, and a hawkish tone from ECB’s Trichet. Coupled with weakening USD momentum following last Friday’s payrolls and Thursday’s poor claims data, EUR/USD has propelled back above 1.3300. We think that the reaction to these events is overdone and current levels are more attractive for re-establishing shorts.”
