DislikedInteresting article from reuters I picked up off fxlive.(Link)
Looks like the SNB might be using options to leverage their money. Imagine the size of those stops!
"Double-no-touch options with downside barriers at 1.18/1.19 have also been cited that would do the same and would serve to help the SNB."
"The SNB's actions mean it is taking a big gamble that European policymakers will succeed in coming up with a solution to...Ignored
Indeed it looks like the SNB are going to pit themselves against the most dangerous entities of the financial world...should make for an interesting Q3. I'm structuring a trade around this:
The idea is to fade rallies to 1.2180/00, to try to build a short position for when the peg is dismantled. With the recent Greek jitters enveloping the marketplace, EUR/CHF has began to fall slightly to the peg levels. I know there are stops just underneath to ~1.1975, followed by the DNT's at 1.19/1.18. I'm thinking that without a new development in the Greek Saga, EUR/CHF may not be able to mow through both the protective peg bids and the protective barrier bids on the first go, without intervention happening soon after, as the SNB tries to maintain the credibility of their intervention. I'm looking for a trade similar to the one I took with the BoJ should these levels be breached. It will be interesting to see how much firepower the SNB are willing to commit to defending this peg. Hopefully it will allow the pairing to reach the top of the range, so I can begin building up my short positions.
On the EUR/USD front, my bearish bias remains in-tact, and I've been making some high-leverage, short-term trades in an effort to grow and compound my account. The objectives for my money management have changed, favoring more short-term, high-leverage plays as opposed to the medium-term, lower-leverage plays I've been making previously. I have limit sells at the 1.3740ish level, with a downside target of 1.35. I will be looking to make a short play on EUR/JPY as well, when it begins to test the 105 level.
I still have my limit buys at 75 and 76 in USD/JPY in case the pairing decides to drop..I'd love to pick it up. I'm also thinking of placing some orders above 78.10 in-case something comes out of the G7 meeting over the weekend.
I believe that's about all on the agenda for now.
Regards,
xXTrizzleXx