Forex Trading: Euro Short Squeeze

by Joe Oliver, Forex Trading-Pips

Forex Trading: The US Dollar traded close to one month lows versus the Euro on Thursday morning after the Federal Reserve extended its pledge to keep interest rates low until late 2014. Federal Open Market Committee said in a statement released yesterday that economic conditions will likely “warrant exceptionally low levels for the federal funds rate at least through late 2014”.

Yesterday we noted euro short interest on non-commercial spec contracts recently hit record highs whilst the euro currency has continued its recent climb. Many traders are now being forced to cover as prices have risen against them creating a classic ‘short squeeze’.

Forex Trading Euro currency 60 minute bars

Forex Trading Euro currency 60 minute bars