Forex Trade Review: USD/CHF Long

Closed my USD/CHF long early as the technical setup for a long position is invalidated with the recent shift in sentiment. Here’s a quick forex trade review.

Original Trade Idea: Short-term Trend Higher in USD/CHF?

USD/CHF 4 Hour Forex Chart

USD/CHF 4 Hour Forex Chart

Volatility has increased and market biases have shifted in the last week thanks to various factors (oil plunge, Russian rouble collapse, weakening Chinese data, etc.), mostly bringing risk aversion sentiment back to the market. Specific to Swiss franc pairs, the lack of action by the SNB to combat a potential deflation scenario at last week’s monetary policy meeting had forex traders buying back short positions after the event.

All combined, USD/CHF has taken a decided turn to the downside with enough momentum to break the potential support area and stay lower.  With the technical setup invalidated and fresh catalysts to keep pressure on the pair, I decided to close my trade down manually at .9588.

Total: -122 pips/ -0.69% loss

I really don’t have additional thoughts on this trade as it’s a textbook setup that just didn’t work out. When the market themes shift and you’re doing swing or short-term trades there’s really nothing more to do than a final assessment and/or close it all down.

For the rest of the week, I’m still watching the U.S. dollar but with the FOMC monetary policy decision coming tomorrow, I’ll wait to see what happens there before hopping on a new trade. Stay tuned!

 

  • FXking

    Hi i can see you wer going long as it was going up in steps but where your entry level is as its swing trade i like scalp or day trade but i would of had to wait atleast the next candle for confirmation i would of never fone long on this trade
    As i would of waited i know thats easy fo say as its not myvmoney and its done now i would of either not entered at all or may off hedged give or take 20 pips for profit or loss

    • Pipcrawler

      Thanks for you thoughts FXking. Sometimes I wait to for confirmation, sometimes I just set orders like with this trade. I wish I could say there’s one technique that applies to all situations, but I there isn’t which is why I try to go with wide stops and survive long enough to let the fundies prove me right. Just didn’t work out this time, but I’ll add this trade and your thoughts to my learning experience. Thanks bud!

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