Update: Our short positions on USDTRY have sinced been closed out via their respective take profit buy limit orders, netting us a total of +1,340 pips. Actual trade tickets posted below.
There are many ways to skin a cat that is the global weakness in the U.S. dollar. Like we have previously mentioned on many occasions, we are bearish the dollar on many aspects and have been looking at different ways in which to gain a healthy short exposure on the greenback.
Congruent with our view that emerging market currencies would outperform most in the FX complex, not withstanding heavily shorted currencies such as the Canadian dollar and Aussie dollar, we have chosen to take the path of being short USD against a basket of EMFX.
Two weeks ago, we initiated our first of the 2 shorts on the dollar against the Turkish lira, at what we believe (and has so far been validated by price action itself) was a good price both fundamentally and technically.