FxWirePro: Euro reaches 1.19 target; partial profit bookings recommended

Back in April this year, before the French election, in an article named, “FxWirePro: Potential euro upside on Macron victory”, available at http://www.econotimes.com/FxWirePro-Potential-euro-upside-on-Macron-victory-627899 , we suggested that a decisive victory for Emmanuel Macron would open up the possibility of euro reaching as high as 1.16 against the dollar. As the euro closed in on our recommended target, in a separate article published in July, named, “FxWirePro outlook: Euro likely to rise further towards 1.19 against dollar”, available at http://www.econotimes.com/FxWirePro-outlook-Euro-likely-to-rise-further-towards-119-against-dollar-798833 , we suggested that the euro, which was ten trading at 1.145, is likely to rise towards 1.19 against the dollar. Here are some key lines from that piece,

“The euro is currently trading at 1.145 against the dollar, which is the highest level for the single currency since April 2016. While the initial bull side push came from the weakness of the dollar back in April this year, which got fuelled by French election win by Emmanuel Macron, the single currency is currently riding on the hawkish speculation with little influence from the dollar’s strength.

The single currency is nearing our short term target of 1.16 against the dollar and is expected to get reached over the coming months. The recent correction, followed by range trading has helped the bull cement its position as it made a formidable base around 1.112 area.

In this article, we would like to recommend further buying in euro as we expect the single currency to reach as high as 1.19 against the dollar. The stop loss should be kept around 1.11 area.”

The single currency has reached our forecasted target this week when it traded at 1.191 against the dollar. The single currency is currently trading at 1.188 against the dollar. We would like to recommend partial profit booking at these level, as we do not see major upside potential for the single currency in the short-term. Our readers are highly recommended to book profits in 70-80 percent of the positions and leave the rest for further momentum gains.

However, one must note that we are not shying away from the outlook of bullish euro yet but preferring to wait on the sidelines for further clarity.