Cross-Eyeing EUR/CHF – Trade Closed

Trade Closed: 2008-01-10 10:35

Our trade was closed this morning as the Swiss Franc continues to gain ground on the majors.

Total: -98 pips/ -1%

EUR/CHF has hit a support area which happens to be the Daily low back on 11/22/2007. The pair may consolidate for a day or two before deciding on reversing or continuing its decline lower. We will continue to watch this pair until there is clear direction from this support area. Stay tuned.

Trade Update: 2008-01-08 13:56

Hello Everyone! Just a quick update on our long position in EUR/CHF. Since our entry, the pair rallied in our direction only to find resistance and a push back down from 1.6450. We temporarily hit our entry point and now we’re back above 1.64, where the pair seems to have found support.

After such a strong move, such as the one we saw from around 1.67 down to 1.6350, we often see a period of consolidation. We will have to keep a close eye as this may be a pause before a move lower instead of a reversal. We will probably have to wait until the ECB interest rate statement on Thursday before we see momentum in one direction or another, so stay tuned! Good luck!

Trade Idea: 2008-01-07 11:26

crosseyed chart

It looks like we have another opportunity with EUR/CHF as we see a support play setting up on the daily chart.

As we can see, the pair has touched an rising support line, and today’s candle is certainly bullish showing a lot of buyers jumping back into some positive carry. Also, stochastics are at oversold levels and they look like they are ready to turn higher.

So, we have a pure technical play today and we will target the upper resistance line, with our stop just below the previous low.

Long EUR/CHF at market (1.6388), stop at 1.6290, pt1 at 1.6490, pt2 at 1.6600

Remember to never risk more than 1% of your account on any single trade. With such a wide stop, reduce your position size to comply with this rule.

Stay tuned for updates! Good luck and good trading!

  • iheartmoney

    hi, what’s your stochastic setting? 8.3.3?

  • cyclopip

    it is set to 10, 3, 3… defaults on our charting software, Xtick…

  • iheartmoney

    can you recommend me a free charting software? I am still using Oanda’s, but it doesn’t have weekly charts.

  • Lookylook

    Hi, please can you tell me, how you determine pt1, pt2 ??
    (Fibo, Pivot …etc.) Thanks

  • cyclopip

    iheartmoney – i believe oanda is one of the few brokers who doesn’t offer weekely data on their platform while pretty much every other broker does. Yes, i think its weird too. Try out other brokers and their charting software to see if it is worth it to you to have weekly charts or not.

  • cyclopip

    Generally, we like to place orders around ’00 levels as they can be significant areas of support and resistance. From experience, we’ve noticed these levels stop and/or reverse momentum… so it would be a good idea to take some profit off the table around these areas. Hope this helps!

  • iheartmoney

    hi, what’s your stochastic setting? 8.3.3?

  • cyclopip

    it is set to 10, 3, 3… defaults on our charting software, Xtick…

  • iheartmoney

    can you recommend me a free charting software? I am still using Oanda’s, but it doesn’t have weekly charts.

  • Lookylook

    Hi, please can you tell me, how you determine pt1, pt2 ??
    (Fibo, Pivot …etc.) Thanks

  • cyclopip

    iheartmoney – i believe oanda is one of the few brokers who doesn’t offer weekely data on their platform while pretty much every other broker does. Yes, i think its weird too. Try out other brokers and their charting software to see if it is worth it to you to have weekly charts or not.

  • cyclopip

    Generally, we like to place orders around ’00 levels as they can be significant areas of support and resistance. From experience, we’ve noticed these levels stop and/or reverse momentum… so it would be a good idea to take some profit off the table around these areas. Hope this helps!

  • asaens

    I have used the free charts at dailyfx.com/charts … basic but helpful to see different time periods in a java based application … hope this helps you iheartmoney.

  • asaens

    I have used the free charts at dailyfx.com/charts … basic but helpful to see different time periods in a java based application … hope this helps you iheartmoney.