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
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!