29 April 2010

EUR/GBP : Fresh Short Legged in @ 87.16

  • Recall yesterday's post : Due to changing nature of XAU vs EUR correlation, being +XAU/-EUR = a doubling up of exposure to EU Debt crisis trade; instead of the cross dampening P&L volatility, it is increased.
  • So, for the 1st time this year, went completely square short EUR last night, not because I think the EUR sell-off is over, but for prudent risk management.
  • Large short EUR position earlier stopped me from putting on an outright short EUR/GBP. No more such constraint now.
  • Legged into short EUR/GBP at 87.16 (which looked really good last night when market was trading at 86.80; not so clever now). Last 82.27, cushion completely eroded.
  • Stop loss on weekly close above 87.47 = triangle line.
  • Triangle downside objective is 0.7452 !

    1 comment:

    Taichiseal said...

    Legged into this at 0.8716 :=

    Day traded into long GBP/USD average 1.5146

    Sold EUR/USD @ 1.3201

    [In hindsight, should have just taken profit on the long GBP above 1.52 and put on the EUR/GBP directly now]