Trading the trend: short EUR/USD
This week, we look at going short EUR/USD as the pair continues to decline following poor eurozone PMI data. With our stop at $1.095, above the recent highs, we are looking for a move down towards $1.07.
(AI Video Summary)
Previous natural gas trading outcome
In this week's "Trading the trend" hosted by Chris Beauchamp on 24 July, the discussion centres on effective trading strategies for the week. Last week’s recommendation by fellow IG analyst, Axel Rudolph, to short natural gas on a bounce to around the 2302 level proved prescient; prices rallied on Monday and peaked close to the suggested entry point at 2297, and it since then started to move lower.
This week's trading opportunity
The current focus shifts to the EUR/USD pair, which shows bearish momentum following weak purchasing managers index (PMI) data from the eurozone. The strategy involves shorting EUR/USD from current levels, with a protective stop loss placed at $1.095 to account for volatility, anticipating potential further declines. We are looking for a move down towards $1.07.
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