Cross-Eyeing EUR/CHF – Trade Closed

Trade Closed: 2008-06-09 00:17

Nice way to start off the week as our trade closes shortly after trading begins in Asia as our short position hits our second profit target.

1st Half: +50 pips
2nd Half: +150 pips
Total: +2.0% gain

Trade Update: 2008-06-06 12:09

What a morning for currency markets and our trade! We were triggered to go short at 1.6200 during the morning European trading session, and it looks like the weak US employment data brought risk aversion back as traders sell off in riskier plays such as equities and carry trades.

Our first profit target was easily hit at 1.6150. Half our position was closed and I have moved the stop on my remaining position to 1.6150 to lock in gains and create a risk free trade.

It looks like the market has stalled at 1.61, and we’ll probably see some profit taking as we approach the end of the week. I’m sticking around on this trade, so stay tuned for updates! Good luck!

Trade Idea: 2008-06-05 15:33

crosseyed chart

Good afternoon my fellow Forex fanatics! We have a technical setup forming on EUR/CHF that may give us an opportunity to short into the current downtrend.

On the chart, we can see the pair trending lower from a recent high around 1.6340, and on the Euro strength, the pair is currently heading back towards the trendline drawn on the chart. Using the Fibonacci tool, we can also see the pair approaching the 61% Fibonnaci retracement area, which happens to line up with 1.6200 on the dot. Lastly, stochastics are indicating the pairs’ rally may be just a bit tired.

Fundamentally, traders are now pricing in the possible rate hike for the Euro next month, but because of the intermarket relationship of risk aversion and appetite that this pair moves in, I am short biased as I think we risk aversion will continue to prevail as an overall theme for a while.

So, while interest rate sentiment is strong, we have have several technical reasons traders would take a look at the approaching area for resistance and possible short term reversal back to the downside. Let’s go with that idea…shall we?

Short EUR/CHF at 1.6200, stop at 1.6250, pt1 at 1.6150, pt2 at 1.6050

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

Stay tuned and good luck!

  • sukiyaki

    Woo cyclopip. What a nice setup. I see why you want to enter at 1.6200 which is at 61% fib but the monthly and weekly pivot is at 1.6220-ish?

    Oh well, we’ll just have to see now. =) Thanks for your great trade ideas, cyclopip!

  • demontez

    Hello cyclopip,
    On the set up of this pair. it looks as if the bulls are in on this one as my 15minutes chart clearly indicates a bulls run to 1.6305 which is the 61% retracement level. I am in on this trade but might get out soon if it hits the 1.6235 level. But as i keep saying you are the man and i will just wait and watch. Send any updates on this pair before we get stopped out, please.
    Thanks

  • sukiyaki

    Woo cyclopip. What a nice setup. I see why you want to enter at 1.6200 which is at 61% fib but the monthly and weekly pivot is at 1.6220-ish?

    Oh well, we’ll just have to see now. =) Thanks for your great trade ideas, cyclopip!

  • demontez

    Hello cyclopip,
    On the set up of this pair. it looks as if the bulls are in on this one as my 15minutes chart clearly indicates a bulls run to 1.6305 which is the 61% retracement level. I am in on this trade but might get out soon if it hits the 1.6235 level. But as i keep saying you are the man and i will just wait and watch. Send any updates on this pair before we get stopped out, please.
    Thanks

  • daring1

    Wow,very nice trade up until now for me,i changed TP1 to 1.6155 because main daily pivot for today sitting at 1.6151 so my first position is closed with a gain of 46 pips(entered @1.6201..,SL 1.6252 just above R1.5)
    I entered second position @1.6208 and i changed this SL now to BE with TP @1.6065 just above MS1 sitting @1.6059:)

  • cwavefx

    I’m short EURJPY at these lofty levels. 165.88 looks like a gift to me :) NFP only came out a tiny bit better, but that 5.5% unemployment is a whooper :D

  • daring1

    Wow,very nice trade up until now for me,i changed TP1 to 1.6155 because main daily pivot for today sitting at 1.6151 so my first position is closed with a gain of 46 pips(entered @1.6201..,SL 1.6252 just above R1.5)
    I entered second position @1.6208 and i changed this SL now to BE with TP @1.6065 just above MS1 sitting @1.6059:)

  • cwavefx

    I’m short EURJPY at these lofty levels. 165.88 looks like a gift to me :) NFP only came out a tiny bit better, but that 5.5% unemployment is a whooper :D

  • PipWolf

    Cyclopip,

    You’ve done it again mate. What a nice way to end the week.

    Cheers!

  • PipWolf

    Cyclopip,

    You’ve done it again mate. What a nice way to end the week.

    Cheers!

  • saint251

    Great guessing, Cyclops. I went down all the way with this trade to 1.61 and got out to the weekend. Cyclops, you´re the man!!!

  • saint251

    Great guessing, Cyclops. I went down all the way with this trade to 1.61 and got out to the weekend. Cyclops, you´re the man!!!

  • dknibbs

    Very nice trade, that was on the button.

  • demontez

    Cyclopip,
    I am giving you a very big round of applause. As i keep saying you are the man of forex. You hold the magic wan. Do you have a book on forex? I don’t mind how much it cost, i will go for it. Because i know it will be full of good ideas.Thanks for this trade.From you ardent listener.

  • dknibbs

    Very nice trade, that was on the button.

  • demontez

    Cyclopip,
    I am giving you a very big round of applause. As i keep saying you are the man of forex. You hold the magic wan. Do you have a book on forex? I don’t mind how much it cost, i will go for it. Because i know it will be full of good ideas.Thanks for this trade.From you ardent listener.

  • SittingBull

    nice

  • SittingBull

    nice

  • cyclopip

    Thanks for the comments everyone…!

  • cyclopip

    Thanks for the comments everyone…!