Close Trade: 2007-06-26 15:40
Its the end of the US trading session and it looks like risk aversion continues as the Yen and the Swissy rally. I’d like to close the positions at market (1.6530) to lock in profits ahead of the abundance of news events we’re about to head into. So, we take a small profit of +45 pips! Not bad!
1st half: +30 pips
2ns half: +15 pips
Total: +45 pips
Trade Adjustments: 2007-06-26 07:50
It took almost a week, but we finally got triggered to go long EUR/CHF during the morning Euro trading session at 1.6515. The Swissy has been on a tear against the majors as risk aversion rises and as traders price in the possibility of future rate hikes by the SNB.
Because of the risk aversion sentiment currently among market players, we will make some adjustments to our originial plan. The pair has run up about 40 pips from our entry, and currently trading at about 1.6545. We will:
Close half of our position at market (1.6545) to lock in some profits. Adjust stop on remaining position to breakeven. We will continue to target 1.6600.
Trade Idea: 2007-06-20 18:19
Well, we missed out on our short trade on EUR/GBP on a conservative entry point, so we will move onto a possible opportunity to jump into the uptrend in EUR/CHF. This has been pushed up as a carry trade and on possible future rate hikes by the European Central Bank. This hasn’t change really, so I believe we are seeing a correction on profit taking and the uptrend may resume.
On the chart, we have the pair moving lower and approaching the 240 MA’s which happens to line up with the 50% and 61% Fibonacci retracement areas. This could prove to be a strong resistance area. We also see stochastics in the oversold area, indicating this pair could turn higher pretty soon.
My only event risk concern for the next 24 hours is the Swiss Trade Balance data, but this could get us to our entry level at the 61% Fibonacci area.
Long EUR/CHF at 1.6515, stop at 1.6475, pt1 at 1.6560, pt2 at 1.6600
Please remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.