We were watching the open last night for signs of continued USD strength from Friday, but the last 15 hours have been very quiet. EUR/USD (current bid 1.4176) is in a tight range.
Without any follow through of lower EUR/USD we will put back on our full position of long EUR/USD.
We originally bought at 1.4059 on July 30 (http://www.backbayfx.com/blog.php?action=fullnews&id=140) with a target somewhere in the 1.47xx handle. Friday morning we noted the price action and the distinct lack of short EUR/USD commentators so we took off half our position before the numbers at 1.4360.
We want to pick up our full position again but not at market, there may still be room for a real wipeout move this morning. We will use a Buy Limit order at 1.4125 to pick up the other half of our order today. If we do not get filled today, we will look to buy at market during the Asia Pacific session tonight.
We will keep our Stop Loss level of 1.3750 in tact for the full EUR/USD position.
Stay Nimble!
Stephen Leahy
Back Bay FX Services, LLC
www.backbayfx.com
