Profit Cystallizes on our EURUSD put. Did you follow?

Our 1.31 EURUSD put, bought for a mere 25pips at 1.345 last Wednesday, is now straddling 100 (99/101 bid/offer) and we take this opportunity to realise some profit as Greek fears begin to creep out of the woodwork. Equity investors spooked themsleves this morning, the cascade of red across screens all day was virutally guaranteed after any meaningufl dip as market agents are acutely aware of how far we've rallied - beyond the June 2011 levels which saw a significantly better (albeit make-believe) economic outlook.
The chart below should help readers to understand our call a little better.

EURUSD, above, is currently the main risk driver in the markets (apart from perhaps AAPL but that's another story entirely), meaning it is watched by every trader everywhere, regardless of what they trade, as an indicator.

It therefore has the 'power' to reverse sentiment and form market tops and bottoms.

Analysis on the pair is a mainstay of our cross-asset forecasting and trade idea generation. Last Wednesday, not only were fundamentals and news-flow pointing to a lower Euro, we also see on the chart signification resistance to a further upside move. These are, in order of importance:

1. The downward sloping trendline (in Red) that has defined the market norm for over 11 months
2. 200-day Moving Average (SMA - in Yellow), an important psychological level for the market
3. The 50% retrace of the move down from 1.425 in October '11

The confluence of these factors led our positioning. Any move up would have been sharp, if however the LTRO 2 had impresed, thus we chose to expose ourselves only in options - limiting our downside.