There is an extremely profitable long-term short euro dollar position from the time when euro was trading around 1.40.  As of this writing euro is trading around 1.07.  Considering that forex positions usually involve significant leverage, the profits are extraordinarily large.

For those using ETF FXE,  FXE is short from $134.37.  It is trading at $103.50 as of this writing.  35% of the full core position size is still being held.  Partial profits have been taken.  The target zone remains $90 to $96.31.

We are likely to initiate more trade around positions while leaving this very long-term position undisturbed for the time being.

 Mario Draghi of ECB was more hawkish than the consensus in his press conference yesterday after ECB meeting.  Today we see euro strengthening against the dollar even after an extraordinarily strong jobs report.

Market participants are beginning to think that monetary policy will tighten in Europe at a faster rate compared to the tightening in the U. S.  Consider taking partial profits on one-half of the position right here and move stop on the remaining to break even.  The prior short zone is no longer valid.

To learn more about Trade Around positions please read, Trade Management Guidelines.