Trade Closed: 2013-03-26 01:19 EST
Boo yeah! Resistance at the 200 SMA held like a charm on USD/CHF and allowed me to close my trade with a win!
Thank goodness for risk appetite! Last Friday, optimism that a bailout deal would be made for Cyprus boosted risk appetite. Of course, the Swiss franc also benefited from the positive turn in sentiment.
I know I said that I would take profit at .9380, but after thinking about it, I decided to play a bit safer. I didn’t know what was going to happen in the Eurogroup Finance Minister Meetings, so I took profit before the week closed at .9420. It’s all good!
I’m really happy with this win. I hope I get to extend my gains!
Trade recap: Sold USD/CHF at .9467, took profit at .9420. +47 pips/0.96% gain.
Trade Idea: 2013-03-22 03:13 EST
Oh my! Resistance on the 200 SMA is holding on USD/CHF, as sheer as a pair of Lululemon yoga pants! What makes this setup even more attractive for me is that the 200 SMA coincides nicely with the 50% Fibonacci retracement level.
I think the level will hold, so I’ve decided to jump in at market. I sold the pair at .9467, with a profit target at last week’s low at .9380. As for the stop, I’ve placed it .9510, a couple of pips above this week’s high.
In terms of economic data, there’s nothing really significant on the horizon. However, I still think we could see a lot of movement in the following trading days as Cyprus’ government tries to come up with enough funds to secure a bailout from the European Central Bank (ECB).
I’m not sure what will happen there, but I’m certain that the Cyprus government just won’t let the country default. Once it comes up with a plan, we could see the Swiss franc be positively affected. I mean, this is the government we’re talking about… The ECB isn’t just going to let it fail!
So to recap, here are the details of my trade idea:
Sold USD/CHF at market (.9467). Stop loss at .9510. Profit target at .9380. As usual, I will risk 1% of my account. Risk disclosure.