Wilson Leung, Director of Trendsetter FX recommends that traders stay away from the euro, and EUR/USD in particular, for the next few days, until we have some closure on the latest Greek deal.
EU don’t want to trade EUR/USD right now
Dialing in from Hong Kong, Leung notes that we are seeing a lot of politically led volatility in euro, with big price swings on latest updates, an example being the surge on news of a deal that was eventually faded.
USD/JPY chance to go long
Looking to USD/JPY, Leung sees opportunity for traders, noting that the pair has seen safe haven inflows due to risk aversion in the market, that actually reversed due to yesterdays risk on scenario. Nevertheless, he sees a chance to go long on dips, with the pair sitting just below its 13 year high. He sees value if spot comes down to 122.60, and selling rallies.
GBP/USD showing selling opportunity
Looking to GBP/USD, Leung is keeping an eye on inflation and Carney’s testimony, adding that he is looking for a 50% Fibonacci correction from the recent top formation around 1.5930 to 1.5250.