EURUSD: We’re very suspect that there’s been a No Touch option play @ 1.4020. Hence, price moved very near that level and the option holder was probably a large bank, and move strongly away. IF price moves back down to 1.4019 after the FOMC, there’s a real possibility of the pair finally breaking support and starting a deeper drop into the “30’s” (anything below 1.40).
Here’s our strategy: (We’re already short the EU with several lots already for a longer term hold)
We’ll take a SELL STOP @ 1.4019 with a 100 pip stop @ 1.4119 and limit will be left open for price to continue south deeper into the 1.30’s. It’s up to you to adjust your lot sizes with this large of stop. Our thinking is always on the conservative side initially. Then, if and once the 1.40 handle is broken, positions can be added once positive 100 pips.
Great Trading to you.
