Not so fast! I might have bagged a lot of pips in my last USD/JPY forex trade, but this USD/CHF wasn’t as lucky. Here’s what happened
Original Forex Trade Idea: USD/CHF’s Rising Channel Bounce
As I mentioned in my original trade idea, I bought the pair on a possible bounce from a rising channel support. Fundamentally I was also banking on more dollar strength and maybe some action from the SNB with EUR/CHF so close to 1.2000 at the time.
Unfortunately for my trade, the lack of major reports inspired investors to take profits. The Greenback weakened across the board and took USD/CHF with it. The pair eventually hit my stop loss level a couple of hours before the SMAs showed a crossover signaling a possible downtrend. Boo!
One thing I could have done better was to close my position as soon as I saw that there was no catalyst for further dollar rally. I could have also closed on a small loss when the pair started consolidating just below the channel that I was watching. Overall though, I think this was a valid trade idea and I generally have no regrets.
That’s it for USD/CHF for me this year. Looking forward to telling you about what happened to my USD/JPY trade from last month!