Today's idea is based on the possible volatility of USDCHF after the Trade Report which is coming out tonight at 2:15 am EST (1915 GMT). At the moment the pair is trading above the 200 SMA and below the 100 SMA and 50 SMA. I use them as support and resistance areas, so if there is a break and a candle closes beyond either of these areas I'm going to take the trade.
To be more specific I am going to set an entry order long USDCHF at 1.3112. My stop will be at 1.3293. Of course, I will be going for 10 pips, but for the daredevil traders I've have found an aggressive profit target of 1.3133. That makes the long trade a rough 1:1 reward to risk ratio.
If USDCHF goes the other way I am looking to short at 1.3040 with my stop at 1.3055. Going for the quick 10 pips and I don't have an aggressive target because I think my entry is pretty far where the the pair is currently trading at. Good luck and good trading!
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- Trade Review: USD/CHF 23:36 10 February 2006
- Pick of the Day: EUR/JPY 20:29 21 February 2006
- Pick of the Day: EUR/JPY 23:32 27 March 2006