Daily strategy, Feb 9 2010, Wait for Euro sell opportunity

09 February 2010 @ 05:37 am EDT

The Euro-zone economy will inevitably remain a key short-term focus, especially with a summit due on Thursday. Confidence will remain very fragile in the short term, but any kind of support package for the weaker economies could trigger near-term Euro relief, especially given the number of short positions in the market. The US dollar will still tend to gain some defensive support on a shift away from riskier assets while support on domestic fundamental grounds will be limited. Overall, the best strategy looks to sell EUR/USD rallies above 1.3750.

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