Sell on a level breakthrough of 1.3166 with 1.3028 target. Stop loss = 1.3220.
Reason for the trading strategy
According to Deloitte, in the US, over 50 oil producing shale companies have declare bankruptcy since the beginning of 2015, and there are still more than 175 companies, which are exposed to a risk of becoming bankrupt because of the violation of the loan covenants. The process of declining the US oil production is slow, but it gives people hope for a stabilization of oil prices in the range of 40-50 dollars in the long term. Against this background, the currencies of Petroleum Exporting Countries still look undervalued.