As Greek drama would settle down by next week, dollar is likely to gain back its lost groove over monetary policy divergence, however it is at crucial resistance against major counterparts.
Dollar index, which is value of dollar against basket of currencies is currently trading at 95.24, faces tough resistance around 96 mark. Small positions can be taken in anticipation of breakout
- Pound seems to offer better risk reward compared to Euro and Yen when considering going short. Fundamentally Yen remains short against Dollar, however in the very near term risk aversion might push it higher against most counterparts.
Trade idea –
- Sell pound at current price 1.576 against dollar. Two stop loss area can be considered depending on risk aversion, first one at 1.581-1.583 and next one at 1.594-1.596.
- Initial target is around 1.535-1.532 area.
The material has been provided by InstaForex Company – www.instaforex.com