FxWirePro: Euro declines for 10th consecutive day, longest since Lehman collapse

The euro is in decline against the dollar for a 10th consecutive day and the last time this kind of more happened was back in September 2008, just four days before the Lehman Brothers collapsed when it declined for 11 consecutive days. The euro is currently trading at 1.06 against the dollar.

We have currently once active call in euro;

• Sell euro against the dollar at the current rate of 1.116, with targets around 1.01 against the dollar and stop losses around 1.14 and 1.15 area.

The euro jumped sharply against the dollar, after Donald Trump won the US election, to trade as high as 1.13, however, on the very same day, it declined to 1.098 at closing. The market started pricing not only a more hawkish regime at US Federal Reserve in the wake of the election but also to Trump policies such as infrastructure spending and energy independence, a tax break for repatriation of trillions of dollars; all of which are positive for the dollar in the medium to long term.

Hence, we expect the current dollar bull run to continue  and the euro to reach our targets comfortably.