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

crosseyed chart

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!

  • LTN7

    Good entry/sl level if price breached 16140 which is also a good sl to buy up on dip. No bearish signal yet..

  • skyraider

    so far so good

  • LTN7

    Good entry/sl level if price breached 16140 which is also a good sl to buy up on dip. No bearish signal yet..

  • skyraider

    so far so good

  • RomanDG

    Hey Cyclopip,
    now this is a nice setup!
    I have one question to you: do you use GMT or NY timezone for your charting?

    thx a bunch,
    Roman

  • RomanDG

    Hey Cyclopip,
    now this is a nice setup!
    I have one question to you: do you use GMT or NY timezone for your charting?

    thx a bunch,
    Roman

  • Babysteps

    Hello
    there is shooting star in my daily chart so i’m also in , I left my order in green pips ++ 30 NOW come back to found Hit my SL
    grrrrrrrrrrrrr
    Any reason for this up move?What ur explanation plz

  • Babysteps

    Hello
    there is shooting star in my daily chart so i’m also in , I left my order in green pips ++ 30 NOW come back to found Hit my SL
    grrrrrrrrrrrrr
    Any reason for this up move?What ur explanation plz

  • dreknar

    I was looking at the ichimoku kenko hyo indicator and the daily chart the price was closing above the kumo and at the weekly chart the price was below a flat kumo. I just started to study this indicator and I would say from my humble undertanding that those 2 would be a reason for the unexpected results.

  • dreknar

    I was looking at the ichimoku kenko hyo indicator and the daily chart the price was closing above the kumo and at the weekly chart the price was below a flat kumo. I just started to study this indicator and I would say from my humble undertanding that those 2 would be a reason for the unexpected results.

  • adiefu

    Good day,
    l quite appreciate your frank market analysis. l have already SHORT the EUR/CHF on pending order from my own analysis.

    I am still SHORTING the EUR/JPY, on pending order, EUR/JPY is trading at its high since last year so ‘am expecting a gracious fall however, the ranging is becoming prolong. pls could you explain to me what market sentiments is creating this prolonged flat market.

    Thanks.

    adiefu

  • adiefu

    Good day,
    l quite appreciate your frank market analysis. l have already SHORT the EUR/CHF on pending order from my own analysis.

    I am still SHORTING the EUR/JPY, on pending order, EUR/JPY is trading at its high since last year so ‘am expecting a gracious fall however, the ranging is becoming prolong. pls could you explain to me what market sentiments is creating this prolonged flat market.

    Thanks.

    adiefu