DISCLAIMER: This report has not been prepared in accordance with the legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead. This report is marketing communication and not investment research and is intended for professional and eligible clients only.170102-stop-loss-in-EURUSD-hit.pdf (151 KB)
- Our stop loss at 1.0675 in EUR/USD was hit in illiquid trade in the early hours of 30 December 2016
- We still expect EUR/USD to fall further so we look for levels to re-enter the call
EUR/USD stopped out
Our short EUR long USD FX high conviction view was a profitable trade until EUR/USD moved aggressively higher (around 1.9%) in the very early trade of 30 December in illiquid market conditions. On the trading system EBS 1.07 was traded. Our profit protection at 1.0675 was therefore hit. As a result this high conviction is closed. After the violent move higher EUR/USD dropped again like a stone and is back at 1.05. We still have a strong conviction that the EUR will move lower versus the USD, so we are looking for levels to re-enter.