DailyFX Tips & Picks: Analyst’s pick
CURRENCY STRATEGIST
CHRIS VECCHIO
My pick: Long euro-dollar, euro-yen above ¥141.45
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: A few hours to a few weeks
The euro has proved resilient in the wake of Russia’s intervention in Ukraine. Euro-dollar is holding above our key level of $1.3770, and a glance at the longer-term charts show that it is trading into the descending trendline off the 2011 and 2013 highs. Failure to fall on such bleak headlines may be indicating that the path of least resistance is higher for euro-dollar. We will be fully comfortable with a euro breakout so long as euro-yen climbs above ¥141.45. This may become difficult for euro-yen given the flight to safety, but there exists broader dollar weakness outside this recent crisis cycle: the dollar-yen has remained range bound between ¥100.80 and ¥102.95 since late-January.