The EUR/USD recovery enjoyed further momentum back above 1.1800. Importantly, this rebound took place in spite of a further widening in Italian-German yield spreads. Comments from the ECB were the main driver behind the euro recovery. Firmer ECB rate-hike expectations are likely to keep the common currency on a firmer footing ahead of the 14 June ECB meeting. We took profit on EUR/USD long today and are looking to get long again on an intra-day setback.

This is how we trade now:

EUR/GBP

Trading strategy: Long

Open: 0.8780

Target: 0.8960

Stop-loss: 0.8690

Recommended size: 1.22 mini lots per $10,000 in your account

Short analysis: Our long position is finally getting back on track. 7-day and 14-day exponential moving averages are both positively aligned. We need a close above June 1 high at 0.8809 now.

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