Trade Closed: 2007-08-30 08:05
It has been a wild ride for the financial markets for the past few weeks, and yesterday was no different as EUR/CHF rallied back up to our entry point to close out our remaining position at break even.
1st Half: +30 pips
2nd Half: +00 pips
Total: +30 pips
In retrospect, a trailing stop on the remaining position would have netted us about 60 more pips, so in the future I will implement that as a part of our trading plans.
Currently, the pair is trading back up at the downtrending 240 MA’s. I will look to short again very soon….stay tuned!
Trade Update: 2007-08-29 11:00
Our trade is still in play, even after a small rally in EUR/CHF. The pair has found resistance at the 38% retracement level of the strong downward move from 1.6689 to 1.6176.
We will continue to hold this position as recent price action appears to be a small retracement in the longer term downtrend. Good luck!
Trade Update: 2007-08-28 12:40
We enter into a short position on EUR/CHF at 1.6390 during last night’s Asia trading session and hit our first profit target during the morning US Session.
We locked in 30 pips and moved the stop on our remain position to break even to create a risk free position. We have the FOMC Meeting Minutes coming up very soon which could affect other currencies besides USD indirectly.
We will hold onto this trade and see what happens. Good luck!
Trade Idea: 2007-08-27 14:57
Today we will check out a possible turn in EUR/CHF as technicals show the trend may be done.
On the chart, we can see 240 MA’s trend lower and stochastics are beginning to turn lower from overbought territory. Also, we can see hidden divergence as price action made higher highs and stochastics highs do not.
First, we will wait for the pair to move lower for a trend reversal confirmation. Our stop will be above the 240 MA’s.
Short EUR/CHF at 1.6390, stop at 1.6460, pt1 at 1.6360, pt2 at 1.6300.
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.