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We are going long EURUSD and EURCHF on our AlphaPicks fund, with spot references 1.0940 and 1.0160 respectively. We feel that risk is showing signs of stabilising this week, after the selling late last week. The two above pairs were flagging as oversold on various technical measures which is why we like the play.

We appreciate that in the long-run, EUR will likely be under pressure from the rising energy prices and the conflict on it’s borders. However, we do think that being long EUR on a bounce could yield strong short term returns vs other currencies. Given the strength of safe havens USD and CHF, we favour shorting both of these to try and eek out further gains as risk gets put back on the table.

We will provide updates on our positions in our usual FX review.

One thought on “QuickPick: Going Long EUR vs USD and CHF”
  1. […] As we flagged up last week, we did think that some crosses were oversold from a technical perspective at the end of last week. Given the hit for the Eurozone from energy prices, EURUSD and EURCHF had moved significantly lower (EURCHF even briefly broke below parity). Looking for a rebound, we went long EURUSD and EURCHF, as we detailed here. […]

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