The euro, as well as all its correlated currencies and related products, crossed critical support levels a few weeks ago and right now is in a pullback within the mid-term downtrend.
The mid- and long-term trend are in phase 4 (bearish), and the RSI on the monthly chart is 23.32, which make it unreasonable to hold it. After our shorts and currency strategies a few weeks ago, right now we are 50% in EUR and 50% in USD (take into account we are, mostly, European based), but we will advance everything to USD to follow the trends of the world economy and the recession in the next months.
Trade:
Financial engineering: cash, not derivatives.
Time horizon: >6 months.
Risk mgmt: +20% of our treasury
Exits: We do not contemplate exits for now, but we are active quant traders and monitor the market daily.
The mid- and long-term trend are in phase 4 (bearish), and the RSI on the monthly chart is 23.32, which make it unreasonable to hold it. After our shorts and currency strategies a few weeks ago, right now we are 50% in EUR and 50% in USD (take into account we are, mostly, European based), but we will advance everything to USD to follow the trends of the world economy and the recession in the next months.
Trade:
Financial engineering: cash, not derivatives.
Time horizon: >6 months.
Risk mgmt: +20% of our treasury
Exits: We do not contemplate exits for now, but we are active quant traders and monitor the market daily.