Home EUR/USD: Longs Here A Super-Optimistic Bet But It ‘Might Be OK For A Punt With A Tight Stop’ – SocGen
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EUR/USD: Longs Here A Super-Optimistic Bet But It ‘Might Be OK For A Punt With A Tight Stop’ – SocGen

EUR/USD was pressured but managed to recover. Where is it going next?

Here is their view, courtesy of eFXdata:

Societe Generale Cross Asset Strategy Research discusses EUR/USD trading strategy and stays sidelined in cash,  but thinks that it might be ok to try a small long here with a tight stop.

“If you add growth concerns to the inflationary consequences of the trade dispute, the prospect of more Fed tightening and Fed balance sheet reduction, it wouldn’t be all that surprising for more money to find a rock to hind under, than to look for opportunities to get to work buying the dip. This is hardly a wonderful backdrop for the dollar, but it still seems to win the ‘best of a bad bunch’ award with most of the market.

Buying EUR/USD only makes sense as a super-optimistic bet that European politics will remain calm and that positions have been flushed out. It might be OK for a punt with a tight stop  but our September 1.15 forecast tells you how comfortable  we  feel. We’re in a 1.10-1.20 range for now , with better times likely after the summer,” SocGen argue.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.