Sell on a level breakthrough of 111.05 with 109.55 target. Stop loss = 111.55.
Reason for the trading strategy
The EU can impose a fine on Spain and Portugal (the fine may be up to 0.2% of GDP), which will lead to a collapse of their economies. The European Commission stated that Madrid and Lisbon have not fulfilled the EU requirements on the reduction of budget deficit. According to the current regulations, this indicator existing in the member countries must not exceed 3% of GDP. Last year's budget deficit exceeded 5% of GDP In Spain, and it amounted to almost 4.5% in Portugal.