Close Open Orders: 2008-03-04 13:20
There wasn’t much more retracement before EUR/CHF resumed its downward momentum and it looks like it will continue lower for the time being. It doesn’t look like we will get short at the price we want, so we will close out our open orders to short at 1.5960.
It looks like the pair is ready to test 1.57 once again. I expect support at that area, but we will just have to wait and see when it hits. Until then, stay tuned!
Trade Idea: 2008-03-03 17:17
We have an interesting chart setup on the Daily, and with risk aversion creeping back into the markets I think we will soon see an opportunity to short EUR/CHF.
On the Daily chart, we see the pair has found support between 1.57 and 1.58. Stochastics may soon be coming out of oversold, indicating a short term rally which would bring the pair to my sell area between 1.5960 and 1.6025.
I like a sell on this pair on the idea global risk aversion will continue as equities drop, and commodities look very toppy as oil rises above $103 and gold just under $1000 and ounce. Also, the Euro’s rally looks tired in general. We’ve already seen its weakness against the Swissy and Yen, weakness against the Greenback and British Pound may push the Euro lower even further.
Short EUR/CHF at 1.5960, stop at 1.6060, pt1 at 1.5860, pt2 at 1.5760
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Good luck and stay tuned!