Derivatives and technical strategy for trading FX – JPM

FXStreet (Barcelona) - The JP Morgan Team shares the trade setup for FX using derivatives, and technicals.

Key Quotes

“FX Derivatives: Re-entry into USD longs from better correlation levels involves buying [EUR/USD weaker, USD/Asia stronger] dual-currency options. Initiate short front/long back straddle calendars in CNH and CLP.”

“Buy/sell 2M vol in EUR/AUD vs. AUD/USD and EUR/SEK vs. USD/SEK.”

“Technical Strategy: The short term corrective phase for the broad USD is intact but the medium term bullish risks are unchanged.”

“Stay long USD/CAD and USD/JPY & short EUR/USD, EUR/CHF, EUR/JPY, PLN/HUF, USD/ZAR, USD/TRY, EUR/TRY and NZD/USD.”