Trade Closed: 2007-06-06 03:00
It looks like we may have been a little bit premature in our entry on this pair. After our first entry, the pair dropped on carry trade liquidation as equity markets, starting in China sold off leading to risk aversion by market players. This move triggered our second order and moved beyond to our stop out level at 1.6460.
It looks like the pair found support at our stop out level… Grrrrr…. And with stochastics in oversold territory, I am tempted to jump in long again as I feel the Euro will rally. But I will hold off any orders for now ahead of the ECB interest rate statement. Stay tuned for the next trade idea:
1st half: -40 pips
2nd half: -15 pips
Total: -55 pips
Trade Idea: 2007-06-04 17:47
Hello Kids! It’s the start of a new month and it looks like traders’ risk appetite is returning to the markets. Today I’m Cross-Eyeing a carry trade opportunity in EUR/CHF. It looks like the market has returned to fair value as the pair is currently trading within the 240 WMA on the 4 hour chart. With economists and traders expecting further rate hikes in the Eurozone, this looks like a perfect opportunity to jump in long in this pair to catch a move higher and some carry interest.
We will have two entry points within the 240 WMA, with our stop just below the 76% Fib retracement line, and our profit targets at the previous high. If we are correct in our analysis and our trade goes our way, we will adjust our exit strategy accordingly.
Long half position EUR/CHF at 1.6500, stop at 1.6460, pt at 1.6545
Long half position EUR/CHF at 1.6485, stop at 1.6460, pt at 1.6545
Please remember to never risk more than 1% on any single trade. Adjust position sizes accordingly.