We are making a FOREX trade against the Euro (EUR) with the expectation that it will drop in the near term. The month of December 2009 has seen a full 180 degree about turn by traders on their expectations for the EUR. From playing for a rise at the beginning of the month, traders now are banking on the EUR to fall as can be seen from the EUR contract transaction data. The situation with Greece is probably the prime reason but the other PIGS nations namely Portugal, Ireland and Spain are helping as well.
However, we are not shorting the EUR against the US Dollar (USD) as we are not sure of the USD direction in the near term. A safer bet is to go with the Japanese Yen (JPY). So, we are shorting (selling) the EUR/JPY currency FOREX pair and looking for it to move down to around the 129 mark. We sold the FOREX play at 131.90. A move down to the 129 level would give us a gain of around 300 pips.
Sponsor: Auto FOREX Trading
Sphere: Related Content
