Public trading strategy
Euro plunges to yearly lows as ECB pivots — short the currency weakness
Thesis
Currencies are largely driven by interest rate differences. Because the European Central Bank is sounding cautious while the US Fed is talking about raising rates, money will flow out of the Euro and into the Dollar. This widening gap puts immense downward pressure on the Euro's value.
Strategy approach
Build a trend-following strategy that enters short EUR/USD on the 4-hour timeframe when the price closes below the previous session's low. Exit conditions: Stop loss placed 1% above the entry price, take profit at a 2% decline. Max hold 5 days.
Markets and timeframes
EUR4H