Cross-Eyeing EUR/CHF – Trade Closed

Trade Closed: 2008-01-04 18:07

Our trade closed as EUR/CHF dropped, after a quick pull back, to our adjusted profit target at 1.6350. Markets saw a return to risk aversion after today’s US Jobs data signaled a higher probability of a US recession and speculation this may lead to a global slowdown.

1st Trade: -80 pips/ -1%

2nd Trade:
1st Half: +70 pips
2nd Half: +245 pips
Total: +315 pips/ +1.57%

So, we recovered from our first losing trade with a net gain of +.57%. It was a long wait, but we still managed to eek out a profit and start the new year off right. I hope everyone did well on this one. Have a great weekend!

Trade Adjustment: 2008-01-02 12:41

Our remaining position has hit our second profit target, but instead of closing the trade we will adjust our stop and go for a new profit target.

Adjust stop to 1.6495, new profit target at 1.6350

Our new target is an approximation of an upward trendline. Momentum is strong enough where we may get follow through. Good luck and stay tuned for more updates!

Trade Adjustment: 2008-01-02 08:00

Happy New Year! Welcome back and it looks like our reverse trade hit our first profit target in the morning European trading session as the Swissy gains ground on the Euro.

It appears that the Swiss Franc is kicking butt against the majors this morning, but Euro buying has limited its move at the moment. With such strong Euro buying going on in the markets now, it is unclear on where this pair will head to next, but for now we will hold onto our position after we have taken some profit at 1.6525, and move our stop on our remaining position to break even.

Trade Update: 2007-12-28 08:50

Like my good friend Pipcrawler we are long on the Swissy, but against the Euro, and after a strong up move, the pair has dropped back down just above our reverse entry level.

We still have a few more days left in the year to see if the pair will drop further on momentum, so we will hold on but probably close on the last day of the year. So, stay tuned and we will see if the Swissy strengthens further. Good luck!

Trade Update: 2007-12-20 12:00

Just a quick update on our short position on EUR/CHF. As expected, it has been a low volatile environment ahead of the holidays which will probably continue until after the new year.

So, with the pair trending lower once again and with slight profitability, we will continue to hold onto this position.

Stay tuned for updates…good luck!

Stop and Reverse: 2007-12-18 10:30

Our position to go long EUR/CHF at 1.6615 was triggered long yesterday, but the momentum had the pair break the uptrend and down to our stop loss at 1.6535.

Since the stop out, the pair has retraced back to 1.6600 which I think is a great place to short as the pair looks like its reversing the trend.

Stopped out: -80 pips/ -1%
Reverse Trade: Short EUR/CHF at market (1.6595), stop at 1.6695, pt1 at 1.6525, pt2 at 1.6450

Remember to keep the risk per trade no more than 1% of you account. Good luck!
Trade Idea: 2007-12-12 12:49

crosseyed chart

EUR/CHF has been in an uptrend since our last look at the pair – will the rally continue?

The trend is pretty strong and there’s really nothing in the way until 1.6825 where we last saw resistance at the end of October. And with the ECB holding on interest rates recently, going long on the pair is supported with positive carry.

We also have an example of hidden bullish divergence as price action makes higher lows while we see lower lows on stochastics.

I am going to wait for the pair to dip a bit before jumping in long:

Long EUR/CHF at 1.6615, stop at 1.6535, pt1 at 1.6695, pt2 at 1.6800

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

If our trade hits our first profit target, stay tuned for stop adjustments as we target 1.6800. Good luck!

  • Tora

    Great analysis, Cross Eyed! Got 1 question: what Parameters do you use for your stochastics? 14,5,5? It looks different from the one I use normally…

  • Tora

    Great analysis, Cross Eyed! Got 1 question: what Parameters do you use for your stochastics? 14,5,5? It looks different from the one I use normally…

  • 4xpipcounter

    1.6683–1.6692 is a cluster resistance area. It seems that would have been a better area to short in. Also would be a nice area for a tight spot. If it is broken, there is not much stopping it to challenge the previous high. It should hit 1.6128 before a new high is made.

  • 4xpipcounter

    1.6683–1.6692 is a cluster resistance area. It seems that would have been a better area to short in. Also would be a nice area for a tight spot. If it is broken, there is not much stopping it to challenge the previous high. It should hit 1.6128 before a new high is made.