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.
Trade Idea: 2008-12-17 19:35
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:
A pretty simple setup, right? Let’s see how it plays out! Stay tuned!