There goes the EUR/USD, crashes right through support at 1.3150 and is sitting below 1.3100, if it holds below 1.3150, next target at 1.2875
there is always and up and down,, manipulated you dont agree!!!
I would like to see a retrace up to around 1.3150 again to look for a short position. EUR/USD’s volatility is hopefully in the process of picking a consistent market direction for the time being. Unless the ECB and EuroZone reach a stellar agreement, financial markets must be bearish on the euro for the foreseeable future.
below 1.3064 still points bearish before next fib resistance at 1.3160..would like to see it towards 1.2930-ish first before leg up, then before a bigger south mho
For the short position view on EUR/USD the below option strategy can be applied.
Buy EUR Put USD Call with strike 1.3020 expiry 1 week. You will pay 4730 EUR
Sell EUR Put USD Call with strike 1.2800 expiry 1 week. You will receive 1651 EUR
Sell EUR Call USD Put with strike 1.3200 expiry 1 week. You will receive 2900 EUR
This strategy is almost zero cost. You will be taking advantage to sell EUR from spot level and will be safe unto spot + 80 ticks. If EUR/USD goes above 1.3250 it is better to start making delta hedge for stop loss.
Pricing source: www.derivativeengines.com/multipleoption2.aspx
The notional amount for the first and second option is 500,000 EUR (puts) and for the third option 1,000,000 EUR (call)
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