Morgan Stanley maintains an active limit order to add a short EUR/USD to its medium-term portfolio. The trade should be entered at 1.3780, with a stop at 1.40, and a target at 1.32. The trade is macro-technical driven. On the macro front, MS' rationale is as follows: "The ECB at its last meeting made a strong EUR the de-facto trigger for rate cuts, including potentially a negative deposit rate. In our view, the outcome of the meeting changed the landscape for the common currency as President Draghi materially signaled easing in June. EUR upside is capped, in our opinion, with equity inflows that strongly ... (full story)