Cross-Eyeing: EUR/CHF – Trade Closed

Trade Closed: 2008-12-18 10:32

My long EUR/CHF trade was triggered at the beginning of the European trading session, but better than expected Swiss Trade Balance and Retail Sales data boosted the Swiss Franc higher. EUR/CHF found a high around 1.5530 before the news pushed the pair down to a low around 1.5300 and triggereing my stop loss along the way.

Total: -150 pips/ -1.0% loss

So, I took a small hit on my account, but I think I’m going to jump back in on the other side. As a user pointed out in the comments section below, EUR/CHF is breaking a rising trendline on the Daily charts. If the markets turn to a risk aversion attitude, and fall back to the Swissy for safety, this break could turn into a nice move lower. Also, another speculation of further rate cuts from the ECB will also support a move lower as well. Stay tuned for another trade idea on EUR/CHF.

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Trade Idea: 2008-12-17 19:35

crosseyed chart

Greetings! Got some simple long technical setups forming on EUR/CHF as the retracement appears to be slowing down. Time to swing higher?

On the four hour chart, EUR/CHF is still trending higher. This retracement down to 1.55 may be a bit oversold according to stochastics (14, 3, 3 settings), and as the pair touches the 61% Fibonacci level. The previous bar formed a doji candle – a possible reversal signal. I’d like to go long above the previous bar highs and target the previous swing highs just below 1.59. Here’s what I’m going to do:

Long EUR/CHF at 1.5500, stop at 1.5350, pt1 at 1.5650, pt2 at 1.5900

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

A pretty simple setup, right? Let’s see how it plays out! Stay tuned!

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  • hany_egypt

    Good plan Cyclopip, I started the trade more earlier from 1.545 .. and I am looking forward to hit the 2nd target point actually as a first goal .. Its Euro days sir .. :)
    Hany

  • MonsterTrader

    I’m demoing it!
    All the best!

  • MonsterTrader

    LOL the trade got stopped out just after I posted! thank god for demo ;)

  • Helltopia

    The swiss provided some good numbers just now (fundies), and the pair is taking another dive. How long will it last untill it will point its cheesy nose upwards again? Im keeping an eye open for an reversal, shouldnt be to long I hope :)

  • cadarkitek

    The 4H is showing an up trend but if you peek the daily you will see that the market is below the outer daily down trend line. Theres also fib convergence of 78.6 and 61.8 from the previous down swing on the daily. My short entry was at 1.5750 after the close of the engulfing bearish candle on the daily chart.

  • hany_egypt

    Good plan Cyclopip, I started the trade more earlier from 1.545 .. and I am looking forward to hit the 2nd target point actually as a first goal .. Its Euro days sir .. :)
    Hany

  • MonsterTrader

    I’m demoing it!
    All the best!

  • MonsterTrader

    LOL the trade got stopped out just after I posted! thank god for demo ;)

  • Helltopia

    The swiss provided some good numbers just now (fundies), and the pair is taking another dive. How long will it last untill it will point its cheesy nose upwards again? Im keeping an eye open for an reversal, shouldnt be to long I hope :)

  • cadarkitek

    The 4H is showing an up trend but if you peek the daily you will see that the market is below the outer daily down trend line. Theres also fib convergence of 78.6 and 61.8 from the previous down swing on the daily. My short entry was at 1.5750 after the close of the engulfing bearish candle on the daily chart.

  • azzure_zerk

    Hello,
    Your blogs seems to be much more interesting but there`s just one thing i have noticed. You made a great advice to each and everyone who can read this blog.I am a newbies in this kind of environment so help me to understand it all.

    Expecting for another nice blog.

  • azzure_zerk

    Hello,
    Your blogs seems to be much more interesting but there`s just one thing i have noticed. You made a great advice to each and everyone who can read this blog.I am a newbies in this kind of environment so help me to understand it all.

    Expecting for another nice blog.