FXWIREPRO Short Term Outlook: Euro Likely to Reach 1.16 Against Dollar
All those, who would like to long Euro but still struggling to find a suitable entry, well today seems to be the day for you. Today Euro cleared above recent high and touched new six month high against Dollar around 1.145 area, and sharply dropped after that as European Central Bank’s executive member Peter Praet once again indicated that European Central Bank is not done with rate cuts.
However, it would be wrong to associate Euro’s drop with Praet’s commentaries as Dollar was strong broad based, there was hardly any additional weakness. Moreover despite intraday comeback, Dollar is broadly weaker and likely to remain so for now.
In our longer term goal, we have suggested going long in Euro against Dollar around 1.09 and targeting areas like 1.15, 1.16 and 1.20. While that entry rate is quite far now, we strongly expect there now exits even a shorter term opportunity to exploit weakness in Dollar with small risk.
Trade idea –
Buy Euro at current rate against Dollar, @ 1.138, with stop loss around 1.128 area and target 1.156-1.162 area. It’s a good 1:2, risk-reward ratio.
The material has been provided by InstaForex Company - www.instaforex.com