In that case wouldn't it be better to be short the dollar against the Asian currencies? I'd be long Euro or neutral but certainly not short. The EU does not enjoy the kind of excessive monetary stimulus that the UK and the US do and there is really very little risk of massive currency devaluation. I wouldn't know where it would come from exactly? The debt crisis is not really an argument, that has nothing to do with the Euro. That would be like saying that if California as a state had to restructure the dollar would lose a lot of credibility. I don't see it that way personally. I don't really know a lot about Asian currencies so maybe it's a good idea. Certainly bad to be short euro against USD, GBP or especially CHF. The CHF is probably the most overvalued currency on the planet.
The Euro is a short. It's just a matter of what risk you want to take. Personally, I prefer to be long Asia and short Euro at the moment. Now, with China warning signs flashing, that may not be a long term thing. We'll have to see. But the Euro is certainly a dead man walking. As for the debt crisis not having anything to do with the Euro, I could not disagree more.
I'm not saying the Euro is a short here, but, saying that the PIIGS having nothing to do with Euro valuations is ridiculous. If Greece had defaulted and they returned to the Drachma you would have ALL of GREECE selling EUROS.
That was a bad trade. Ouch. "Mr. Market" hammered EUR/USD right into tailspin...stopped out with 158 pips loss.
You got out (with the loss) at the bottom... and you entered long at the top... So either the retail traders is you, or the retail traders stick it to you... Did you not learn your lesson back when EUR/USD was at 1.1950 area? You started a thread stating that retail traders were long, and the commercials were to going to kill them because they were short according to the COT?