Pick of the Day: USD/CHF - Trade Closed
Trade Closed: 2008-03-19 18:21
Our trade went our way throughout the Asia/Euro trading session (hitting our first profit target along the way), but after testing .9900, the pair rallied and closed out our remaining position.
1st half: +80 pips
2nd half: +00 pips
Total: +.40% gain
While I think the US Dollar will continue to lose out to the Swiss Franc on interest rate differential and carry unwind, I think it's going to be a battle for direction in the short term...possibly until we see the end of the US interest rate cuts. I hope everyone did well on this simple trade. Stay tuned for a new trade idea tonight!
Trade Idea: 2008-03-18 23:50
Pretty simple trade idea tonight after today's highly anticipated interest rate cut from the Fed. We saw a rally in USD/CHF leading up to todays Fed decision, but with the US Dollar pulling in interest now lower than Swiss Franc I think this pair may fall even further after this breather.
The pair is currently trading below parity, around the 50% Fibonacci retracement level drawn on the chart. There's no major event news for either the USD or CHF, so I think parity will hold as resistance and as technical levels may play out strongly today.
Short USD/CHF at market (.9980), stop at 1.0080, pt1 at .9900, pt2 at .9800
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Good luck, good trading, and stay tuned!
