Sell on a level breakthrough of 1.0656 with 1.0600 target. Stop loss = 1.0706.
Reason for the trading strategy
The growth of the terrorist threat in the Eurozone has contributed to a slight increase in demand for protective assets, German and French bonds. The yield on 10-year German and French bonds fell by 3 and 2 bps respectively since the beginning of this week. Meanwhile, market participants preferred to sell the euro, despite the inflation rise form -0,1% to 0.1% (y/y) in the Euro zone in October.