Pick of the Day: USD/CHF

The USD/CHF has been in a very tight range of about 12 pips since the close of the US trading session this afternoon. Traders are on the sideline as we have significant US economic reports coming out tomorrow, most notably US Consumer Confidence report. With a range so tight, I feel we should se a significant move, possibly as soon as the Euro trading session begins, and most definitely after tomorrow’s news releases. Now, PPI came out lower than expected today, and usually that means a lower number for CPI, but the market is actually expecting a higher number as energy costs are passed through to the consumer. Also, Housing starts will be released tomorrow with consensus at lower than previous numbers, showing a continued slowdown in the housing market. So, here’s a short idea, and of course a long trade idea for any surprises in the numbers:

Long USD/CHF at 1.2400, stop at 1.2380, pt1 at 1.2420, pt2 at 1.2450

Short USD/CHF at 1.2350, stop at 1.2370, pt1 at 1.2330, pt2 at 1.2300

Good luck and good trading and check out my new Pipcrawler’s Forex Signals at http://pipcrawler.blogspot.com!