DailyFX Tips & Picks: Analyst’s pick
CURRENCY STRATEGIST
CHRIS VECCHIO
My pick: Long euro-dollar above $1.3770, short below $1.3680; watching euro-yen
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: A few hours to a few weeks
Our attention is now more focused on the euro. It has proved resilient in 2014, despite deflation fears. But with the European Central Bank meeting next Thursday, it is inevitable that this bearish weight is back in the picture. Accordingly, as the euro attempts to retake former trend support versus the yen and the dollar, it’s best to stick to the technicals to avoid speculative trading. Euro-dollar longs are preferred above $1.3770 (last week’s high), while a move below $1.3680 (pivotal level in 2014) could indicate a near-term top. Similarly, as euro-yen has broken the downtrend from January highs, a daily close through and above ¥140.85/141.45 would reignite the bullish bias.