Public trading strategy
ECB hikes rates to fight Iran war inflation — short the Euro against a resilient
Thesis
The European Central Bank just raised interest rates to combat inflation driven by the Iran war. While higher rates usually strengthen a currency, the Eurozone economy is highly sensitive to energy prices and is much more fragile than the U.S. economy right now. If the Federal Reserve signals it might also hike rates next week, the U.S. dollar will likely crush the Euro as global capital seeks the safest, highest return.
Strategy approach
Build a rule-based strategy that enters short EURUSD on the daily (D1) timeframe. Entry: EURUSD is below the 50-day EMA, and the 14-day RSI crosses below 55. Exit: A 2.5% profit target is reached, or a 1.5% stop loss is triggered. Max hold of 12 days.
Markets and timeframes
EURD