EUR/USD: Short Biased In The Long Term


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


 
Positioning

Open short at eur/usd at current price targeting long-run technical level 1.3521 (50.00 percent of Fib. retracements 2009-2010 and 2011-2012 two highest and lowest levels repsectively). The currency is trading in the highest price since Nov. 2011. Technically, under the stochastic indicator, -K and D have broken the resistance level of 80.00 by 10.09 and 9.53 points. -K is on the verge of intersecting D, revealing that the momentum will change and the trend might follow a downward step -- hence, a correction will take place.

 

Open long at eur/usd at current price targeting 1.4120 (61.8 percent of Fib. retracement 2011-2012 highest and lowest prices). The long position is opened because the good fundamentals of the eurozone (news and macroeconomic data) have shown a positive recovery in the area, and therefore the euro, to have appreciated significantly. This strong momentum is depicted by the +D,I which is moving far above the -DI and in the same time the ADX is in a very clear postive and strong levels 38.10. Moreover, the appreciated momentum is shown by the aggressive intersection to the upward level of EMA 50D (EMA 50D > 100D > 200D > 300> 500D).

 

Market exposure should be 80 percent short,  20 percent long.


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


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Posted In: EurozoneCommoditiesForexMarketscurrencydollareuroEurozoneEuroZone CrisisForex currency trading