Trade Closed: 2007-12-28 13:54
It looks like we ended the month on a positive note as the Greenback continued to sell off, pushing USD/CHF to our second profit target and close out our trade.
1st Half: +120 pips
2nd Half: +235 pips
Total: +355 pips/ +1.96%
I hope everyone did well on this trade and have a happy new year!
Trade Adjustment: 2007-12-27 12:21
USD/CHF has reached our first profit target at 1.1395. We have closed half of our position to lock in some profits and adjusted our stop to break even to create a risk free trade.
If USD/CHF continues to fall further, we will lock in profits by moving our stop on the remaining position along the way. Stay tuned for more updates and a possible position close before the end of the new year. Good luck!
Trade Update: 2007-12-26 21:41
It has been a nice an quiet holiday season for our latest trade as USD/CHF has kept in its range between 1.15 and 1.16 in the last couple of weeks or so. The pair is currently trading back down near our entry point after coming within a few pips of stopping out to below 1.15 briefly.
We will continue to hold onto this trade through the end of the year, market willing, as commodities rise and the effects of the subprime fallout weighs on the Greenback once again. We are also seeing a return to carry trades as we wind down 2007, so we do have to be cautious as markets are uncertain going into the new year.
No new trade idea tonight and probably for the rest of the week as trading volume will continue to be light going into 2008. Anything can happen of course, so we will always be ready. Stay tuned my friends for updates!
Trade Idea: 2007-12-18 20:14
Today, we are taking a look at a longer term play on USD/CHF as the pair looks ready to return to the downtrend.
On the daily chart, we can see the pair returning to a downward trendline. Using the Fibonacci tool, we can also see a 61.8% retracement – another resistance area. And finally, stochastics are showing the pair is short term overbought.
So, we will short the pair at market and target the Fibonacci levels on the chart.
Short USD/CHF at market (1.1515), stop at 1.1605, pt1 at 1.1395, pt2 at 1.1280
Remember to never risk more than 1% of your account on any single trade.
Good luck and good trading!