Cross-Eyeing: EUR/CHF – Close Trade

Close Trade: 2008-12-10 15:47

Zzzzzzzzz…Yup, that’s about how exciting the EUR/CHF market has been for the past two days. To be fair to the pair, there has been little news to spark moves in the markets other than the Auto Bailout plan in the US. In Europe, we saw better than expected ZEW Economic sentiment data, but it is still reads very negative.

We may see some life in the markets in the upcoming European trading session as the SNB announces their rate decision at 830 am GMT. Expectations are to take interest rates down by 50 basis points to 0.50%. This could be detrimental to my trade as we may see sentiment shift to more confidence and risk tolerance. EUR/CHF may rally further, so I have decided to close my trade early.

Closing trade at market (1.5600).

Total: -40 pips/ -0.40% loss

So, I took a very small hit, but it’s all about cutting losers quickly to stay alive in this game. Stay tuned as I may have a new trade idea before the end of the week.

Trade Idea: 2008-12-08 13:36

crosseyed chart

Greetings! EUR/CHF is giving me another potential trade opportunity on the daily chart as the pair hits the 61% Fibonacci retracement level once again. Are sellers ready to jump back in once again?

We also have bearish divergence forming as price action makes its way higher, while the stochastics fall a bit lower.

So, while my trade is based on technicals today, we always gotta look at the fundies, right?

The Euro has risen as of late to to risk tolerance rising across global markets. The US Dollar, Japanese Yen, and Swiss Franc have taken hits as traders get a bit more brave as we see positive talk from government officials and more and more money thrown at the financial crisis.

For me, I agree with US President-elect Obama who said, “it will get worse, before it gets better.” Credit markets still haven’t unfrozen, housing markets are still taking a pounding, demand for raw materials is still down, and consumer confidence is totally wack as people lose jobs.

I think this recent rally is another short term selling opportunity and this is what I’m gonna do:

Short EUR/CHF at market (1.5560), stop at 1.5660, pt1 at 1.5460, pt2 at 1.5000

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

Stay tuned my friends!

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  • MonsterTrader

    I’m in w/ u on this one!

  • -Conan-

    I like this trade. Just curious; what are your stoch settings?

  • cmlb

    Joined you too. If we look at the weekly chart, i am guessing this pair is starting to ride a big C wave down soon…

  • xaser

    Looks solid to me

  • xaser

    btw conan– those look like 8,3,3 to me

  • cyclopip

    Thanks for the comments everyone! Conan – my stoch settings are 14, 3, 3.

  • MonsterTrader

    I’m in w/ u on this one!

  • -Conan-

    I like this trade. Just curious; what are your stoch settings?

  • cmlb

    Joined you too. If we look at the weekly chart, i am guessing this pair is starting to ride a big C wave down soon…

  • xaser

    Looks solid to me

  • xaser

    btw conan– those look like 8,3,3 to me

  • tjhimself

    im in it with you

  • cyclopip

    Thanks for the comments everyone! Conan – my stoch settings are 14, 3, 3.

  • tjhimself

    im in it with you

  • hany_egypt

    Actually, I am at the sidelines this week as I couldn’t analyze the market fundamentally since the last events had released .. But technically I see it’s a good trade .. Good Luck 4 you all .. Hany

  • Jayala

    My swap is -$3.98…lol greedy brokers….

  • hany_egypt

    Actually, I am at the sidelines this week as I couldn’t analyze the market fundamentally since the last events had released .. But technically I see it’s a good trade .. Good Luck 4 you all .. Hany

  • Jayala

    My swap is -$3.98…lol greedy brokers….

  • LoboTrader

    Cross-Eyeing: Maybe this entry is not Good, this pair up and dawn betwen 1.5550 and 1.600 in the last 24 hours and in two days more Switzerland cut their intererst rate, and this is bad for CHF.

  • LoboTrader

    Cross-Eyeing: Maybe this entry is not Good, this pair up and dawn betwen 1.5550 and 1.600 in the last 24 hours and in two days more Switzerland cut their intererst rate, and this is bad for CHF.

  • cyclopip

    What’s up everyone! Thanks for the comments! Yeah, markets are tough during the holiday season, and it looks like everyone stopped participating in EUR/CHF….crazy! Let’s see if tomorrow’s news will bring some volatility to the crosses.

  • cyclopip

    What’s up everyone! Thanks for the comments! Yeah, markets are tough during the holiday season, and it looks like everyone stopped participating in EUR/CHF….crazy! Let’s see if tomorrow’s news will bring some volatility to the crosses.

  • Helltopia

    Maybe we should have chosen usdchf for this setup instead? Oh well, next time :)

  • Helltopia

    Maybe we should have chosen usdchf for this setup instead? Oh well, next time :)