BUZZ-COMMENT-Traders need insurance against a bigger EUR/USD plunge
1 min read
June 16 (Reuters) – Overseas trade traders can use a straightforward option method to insure towards a even bigger EUR/USD fall in coming classes, as the euro stays susceptible to downward strain.
The Federal Reserve on Wednesday unveiled its most important fee hike considering the fact that 1994, leaving the European Central Bank in its wake. This improves the chance of an eventual EUR/USD slump to parity, a stage Fx markets have not observed since December 2002.
A 3 black crows candlestick sample that shaped on the EUR/USD each day chart – a few significant black candles in a row previous Thursday, Friday and on Monday – highlights the fundamental bearish specialized outlook.
Those people who want to insure in opposition to a EUR/USD slide can get a a person-7 days 1.0400 EUR put alternative at a price tag of 58 pips, priced with spot at 1.0400. Revenue opportunity is unlimited if place is beneath the 1.0342 breakeven place at the June 23 expiry, even though losses are constrained to the premium compensated.
For much more click on FXBUZ
Fenics Pricing Grid: https://tmsnrt.rs/3xWVWYo
Every day Chart: https://tmsnrt.rs/3xtBFbz
(Martin Miller is a Reuters current market analyst. The views expressed are his own.)
The views and views expressed herein are the views and thoughts of the creator and do not automatically replicate individuals of Nasdaq, Inc.
