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Tips on shorting the market in EURUSD and the DAX

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After last week's mini meltdown in the markets, Central Banks did all they could to soothe the markets. This sparked a relief rally in equities and risk-on currency pairs. Thomas Light from Faraday Research says this has created some attractive trading opportunities in EURUSD and the German DAX.

Starting with EURUSD, Light says last week's retracement has taken prices back to previous structural support at 1.28. He says this a "great level to short the market" particularly given the strength of EURUSD's down trend.

Moving on to the German DAX, Light says the 'head and shoulders' pattern he identified a few weeks ago is working well. He says any retracement up into 9,000 will create an opportunity to short the markets at very attractive levels of risk award.