Pick of the Day: USD/CHF – Trade Closed

Trade Closed: 2007-02-07 16:00

There just wasn’t much action, especially with the mix of positive and negative US reports. Nonfarm productivity rose, while Unit Labor Costs and Consumer Credit came out weaker. So,
it’s almost near the end of the trading session and our position is currently 10 pips in the money. We will close our trade at 1.2415 for a 10 pip gain. It’s a small win, but a win nonetheless.

Half position: +10 pips

Order Adjustment: 2007-02-07 07:40

USD/CHF came close to our long trade trigger at 1.2390, but no cigar. I am still USD long bias and I feel we can still catch a nice short term rally, so let’s cancel all open orders and enter some new ones.

Cancel all open orders.

Long half position of USD/CHF at market ( 1.2405), stop at 1.2380, pt at 1.2425

Good luck and good trading!

Trade Idea: 2007-02-06 23:50

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We’ve seen the Greenback take a hit against the Swiss Franc as the pair has moved from just above 1.2500 down to 1.2390. On the 4hr chart, we see the pair finding resistance at a previous support line near 1.2390. We will go long from here with a full position.

Later today, we do have event risk with the quarterly Non-Farm Productivity report and Unit Labor Costs report. The forecast for the former is about a 2.2% rise and a 2.3% rise for the latter. Positive numbers should support our short term long bias on the pair. Here’s our trade idea:

Long USD/CHF at 1.2390, stop at 1.2370, pt1 at 1.2410, pt2 at 1.2430

Remember to never risk more than 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!