Pick of the Day: USD/CHF – Trade Closed

Trade Closed: 2007-06-08 10:45

Bullish dollar sentiment remained strong as we saw a push in dollar buying durning the European trading session. Our long orders at 1.2280 was triggered and both profit targets were easily hit as USD/CHF rallied into the US trading session.

So, we got off to a rocky start, but we managed to end the week with a winning trade, and only down 25 pips for the week. It’s been a volatile market and hopefully we will get the same action next week. Until then, have a great weekend!

1st half: +20 pips
2nd half: +40 pips
Total: +60 pips

Trade Idea: 2007-06-08 00:10

PoD Chart

The focus for USD traders today will be the US Trade Balance report, which is set to be released at 8:30 am EDT. The key component traders will be watching for is if the uptrend in exports continue.

Right now, the market sentiment is on the Greenbacks side as the possibility of a Fed rate cut is thrown back further into traders minds. If the trade deficit decreases we will definitely see a further rally up to the previous resistance point around 1.2330. A further increase in the deficit should cause a short term drop in the pair, probably back to the previous swing low around 1.2150.

So, we will prepare for a trade in both ways:

Long USD/CHF at 1.2280, stop at 1.2240, pt1 at 1.2300, pt2 at 1.2320

or

Short USD/CHF at 1.2230, stop at 1.2270, pt1 at 1.2200, pt2 at 1.2150

Please remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Good luck and good trading!