close open orders: 2007-03-20 13:05
Ever since the Euro trading session, the pair has failed to stay above the 1.6140 mark, telling me that sellers are there to stay for now. Swiss PPI came in higher than expected at 0.3% versus the forecast of 0.1% and German PPI came inline at 0.3% with consensus. I still see this pair heading south in the short term, but with EUR/CHF trading in a 30 pip range since yesterday I think traders are on the sidelines waiting for a catalyst to jump back in.
For now we will cancel all open orders. We will keep an eye on this pair, so stay tuned!
Trade Idea: 2007-03-20 01:02
Good morning! Today, we will be taking a look at EUR/CHF. There is much to move currencies today on the news line up, including the German monthly PPI report and the PPI for the Swissy. The Producr Price Index reports measures the rate of inflation felt by manufacturers and could be seen as a leading indicator to a country’s CPI.
On today’s Pick, we see that the pair has made a strong run up after touching the trendline near 1.6050. Stochastics might be indicating that this move may be a little overdone, but I think the pair will go a little bit further up to the previous high near 1.6200. At that price level, traders should meet resistance and possibly a selloff.
Short EUR/CHF at 1.6190, stop at 1.6230, pt 1.6110
Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.
Good luck and good trading!