Cross-Eyeing: EUR/CHF - Trade Closed
Trade Closed: 2008-07-15 09:02
Big day in global markets and we see risk aversion and anti-dollar sentiment priced in ahead of Fed Chairman Bernanke and Treasury Secretary Paulson's testimony to the US Congress later today.
It looks like traders shrugged of news of plans by the government to help Fannie Mae and Freddie Mac and continued to sell off equities in Asia and Europe, and the US Dollar. Also, ZEW data out of the EU came out negative for the Euro, helping to push our pair lower.
Our trade was triggered and while we were temporarily in profit, carry trades began to sell off as soon as the European session began to open.
Total: - 50 pips/ -1.0%
EUR/CHF has just hit support at 1.6050 where it price held back on 6/30. We may see prices stall here for a bit, but look for further movement lower if that area fails to hold.
Trade Idea: 2008-07-14 18:00
Greetings! The Swiss Franc strengthened today on risk aversion, bringing the pair closer to a rising trendline and possibly a long trade opportunity.
Today's trade is a basic short term play on riding the rising trend. Stochastics are creeping lower near oversold conditions, so we'll wait for them to get there by putting our orders to long at 1.6150.
We do have event risk during the upcoming European trading session with the ZEW Economic statement for both the EU and Germany. This may give us enough volatility to bring the pair lower and trigger us long.
Long EUR/CHF at 1.6150, stop at 1.6100, pt1 at 1.6200, pt2 at 1.6250
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Good luck and good trading!
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