Buy on a level breakthrough of 1.1375 with 1.1496 target. Stop loss = 1.1325.
Reason for the trading strategy
The continued curtailing of the carry trade operations makes investors buy euros. Yesterday, the European stocks ended the day with a strong decline: The DAX 30 fell by 2,93%, the CAC40 fell by 4,05%, etc. Investors are extremely worried about a substantial increase in the cost of Deutsche Bank's credit-default swaps (CDS): 5-year CDS on the bank's subordinated debt reached a record high of 540.77, surpassing the 2008 peak.