BK – EUR/USD Big Trade Stopped Out

***BK – EUR/USD Big Trade Stopped Out

**Cancel all remaining Big Trade pending orders. We are STILL long USD/JPY

BK EUR/USD Big Trade – Greek Debt Deal Straddle

The Trade:

2 Sets of Orders

EUR/USD

1) Place Order to SELL EUR/USD at 1.1210

Stop at 1.1400


2) Place Order to BUY EUR/USD at 1.1437

Stop at 1.1275

Risk on our BIG TRADES is large, so make sure your position is small.

We will manage the take profit dynamically and send out alerts on when to take profit and/or move your stop.

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For the past week, EUR/USD traders have been waiting with bated breath for news on Greece. With EU Finance Ministers meeting as we speak and EU Leaders convening tomorrow, the next 24 hours will be very important for the euro. We know that the currency is deeply oversold with short positions at their highest levels since June 2012. This means if there is any hint of progress in this week’s talks, speculators will cover their short positions quickly and aggressively, driving the EUR/USD sharply higher.

While we would love to lay out a directional trade on this but politics can be tricky and the political brinkmanship makes handicapping the Greek debt talks particularly difficult.

Fundamentally, it is in everyone’s interest to avoid a Greek default and more importantly a Grexit but Europe does not want to let Greece off the hook so easily for their irresponsible fiscal decisions. There is no question that the talks are very important deal and given the consolidative price action in euro, the outcome should have a significant impact on EUR/USD. If the ECB and EU refuse to give in and instead prepare contingencies in the event of a Grexit, the uncertainty that it creates for the region will push EUR/USD to fresh 11 year lows.

We believe that the best way to trade the Greek debt deal is through a straddle where we simultaneously place orders to buy and sell the EUR/USD and let politicians tell us where the EUR/USD will go.

EUR/USD Straddle

1) Place Order to SELL EUR/USD at 1.1210

Stop at 1.1400

2) Place Order to BUY EUR/USD at 1.1437

Stop at 1.1275

Risk on our BIG TRADES is large, so make sure your position is small.

We will manage the take profit dynamically and send out alerts on when to take profit and/or move your stop.

Swing

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