STUART SCOTT : EURO Thoughts – A key short term trend indicator that has become a bit of a favourite is the 4 vs 12 DMA … We are very close to crossing over in EURUSD which would suggest that a short term bullish trend will ensue .. However my not unsubstantial gut tells me that the price action
post VOTE is not at all conducive to a further rally .. I also note month end flows tomorrow should be negative EURO … Given the above mix I have initiated fresh shorts and will stop out above 1.4460 highs eyeing a move back to 1.4100 lows in the coming couple of days … Steeper losses into the NY close could well prevent the 4v12 crossing over and buoy the belief in us stubborn bears … chart to follow
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