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Forex pairs in this Article » EUR/USD (New York) - According to Strategist Robert Rennie at Westpac, “For much of the last few weeks amid the tapering debate USD gains have been narrowly concentrated against the AUD and emerging markets currencies.”

“Coming days should see USD strength on a broader front – the EUR looks to be the very obvious short here. We find it very hard to believe that EUR can continue sitting in the 1.32 to 1.33 range that it has been in since the beginning of June.” Rennie recommends.

We have therefore added a short EUR position to our Forex Focus portfolio at current levels (1.3208) and will look to add more on strength to 1.3350. If we are correct in our view, EUR should not trade above the recent high so we will place a stop above 1.3400. The objective on the trade would be for a move back towards important support levels off the April and May lows which come in around 1.2850.
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