Decided to take profits on my USD/CHF ahead of the weekend and price action indicating that the trade may be done for now. Here’s a quick forex review.
Original Trade Idea: Forex Trade Idea: USD/CHF Long
The Greenback took a broad dive this week, possibly on profit taking after it rallied on the Chinese yuan devaluation moves by the PBoC this week. Whatever the catalyst may be, it was enough selling to bring the market down to my trigger order at .9700 and put me in a small position long.
Fortunately, there were buyers ready to take the market back there, but there wasn’t enough to push the pair much higher than .9800 this week, eventually falling back to the .9750 area today, even after some better-than-expected PPI data. Given this behavior despite some mostly positive U.S. data, I’ve decided to take a small profit going into the weekend to avoid any weekend risk. Closed manually at .9763.
Total: +63% pips/ +0.078% gain
I think I probably should have taken profit at .9800, but of course we don’t know if an MA or level of interest would be a reversal point until quite a ways after. Overall, it was a good trade and since I’m still fundamentally bullish the Greenback, I’ll continue to look for long opportunities for now. Stay tuned and have a great weekend!