The reason I'm saying this is because the equities market are probably overpriced and due for a correction. I am personally short in a couple of cyclical stocks, while long in safe haven assets.
Going onto technicals, we can see that the pair has hit a downtrend line. It has also been moving up sideways since October, signalling a weakened rally. We are also able to locate significant resistance 114.30-50, based on price action in May and July 2017. With this, I am able to justify a short on the pair, with a final target at around 110.20. I would take some profit as the pair moves down, but expect myself to be out by 110.20.
Cheers guys, happy trading.
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