Dollar Strength to Take Toll on EUR

The Dollar has benefited from the better than expected NFP last week, and the sell off is expected to continue, potentially to the lows seen in mid-July (the low 1.38 range). In the longer term the EUR is expected to recover unless the GDP falls more than 1%, due out later this week. Here is the strategy I am taking to take advantage of the remaining strength of the EUR before this trend reverses:

EUR/USD
Sell 1 unit @ 1.4175, SL= 1.42790, TP=1.3900
Risk: 100 pips, $1000/$100
Reward: 275 pips, $2750/$275

May look to add to position later and will keep you posted on twitter.

From the Desk of
Aaron Reid