Cross-Eyeing: EUR/CHF - Trade Closed
Trade Closed: 2008-07-22 22:22
Grrrrrrr!! After nearly hitting our first profit target, EUR/CHF rallied this morning as global risk appetite grew on comments from US officials, oil weakness, and short covering. Equities rallied along with carry trades, boosting up EUR/CHF.
Our trade stopped out during the morning US session.
Total: -50 pips/ -1.0% loss
So a frustrating end to a great setup, but today was full of surprises. Luckily our stops and risk management contained our losses. As they say, "Live to trade another day."
Trade Idea: 2008-07-21 18:03
Good Evening! EUR/CHF has rallied to a potential resistance area giving us a great short opportunity in that market.
On the chart, we can see a channel forming on the pair, with traders pushing it back up to the top in recent trading sessions. It looks like the pair has recently found sellers to push it lower from this area, so I suspect traders may closely watch and react in the same way to this area. Stochastics are in overbought territory, also indicating last week's rally may have run out of steam. So, I look to short the pair from the current market levels:
Short EUR/CHF at 1.6200, stop at 1.6250, pt1 at 1.6150, pt2 at 1.6000
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
No major event risk for either currency until Thursday with the release of the German Ifo Business data, so technicals and global risk aversion may play a big influence on the pair until then. Stay tuned for updates and adjustments...good luck!
