Pick of the Day: USD/CHF – Trade Closed

Trade Closed: 2007-10-24 08:45

We managed to snag a few pips yesterday as our trade closed at break even as the pair rallied back up from 1.1710 to our entry point where we adjust our stop.

1st Half: +30 pips
2nd Half: +00 pips
Total: +30 pips

Trade Adjustment: 2007-10-23 10:20

As USD/CHF trade just above the 1.17 handle at 1.1710, I would like to lock in profits and reduce risk as we may see volatility as we approach the end of the European trading session.

Close half position at market (1.1710) and move stop on remainding position to breakeven.

If we hit pt1 we will adjust our stop to 1.1700. Stay tuned and good luck!

Trade Update: 2007-10-23 09:33

Our short trade triggered during the early morning European trading session. We are currently in the black by about 20 pips, and we have a bit further to go to reach our first profit target.

So, we will hold on and please stay tuned for any trade adjustments. Good luck!

Trade Idea: 2007-10-22 23:37

PoD Chart

Good Evening! We should have seen the Greenback fall after the G-7 meeting with the failure to mention Dollar weakness, but instead the currency rallied on risk aversion and flight to safety as riskier, high-yielding currencies were sold off during the global equity sell off on Friday and Monday. Is this an opportunity to sell Greenbacks once again, or are we seeing a shift in Dollar sentiment?

Well, it appears that the Dollar decline has accelerated since the credit crisis back in August, so a technical correction may have been due and needed for Dollar bulls. But with housing data in the US approaching this week we may see Dollar bears taking over very soon.

Our chart on USD/CHF may support this idea as it looks like the quick rise may have run out of steam as the pair ranges around the 240 MA’s, just below 1.18. Stochastics are also showing the pair short term overbought as well.

So, technically i’m going with the sentiment that this pair may be overbought and the fundamental idea that traders will continue to price in a rate cut by the Fed at the end of October, a decline ahead of weak US housing data this week, and more Dollar selling as foreigners are less likely to buy US assets. Here we go:

Short USD/CHF at 1.1740, stop at 1.1810, pt1 at 1.1660, pt2 at 1.1600

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

Good luck and good trading!

  • havenoidea

    buy limit 1.1700 stop 1.1650 1pt 1.1850 2pt 1.1920

  • havenoidea

    buy limit 1.1700 stop 1.1650 1pt 1.1850 2pt 1.1920