Trade Closed: 2008-06-10 00:13
Our trade was triggered and stopped out this morning as US Dollar strength continues to grow after Bernanke’s comments on inflation. My idea that the broken rising trendline and fibonacci retracement areas may hold as resistance didn’t pan out as USD/CHF managed to push through 1.0400.
Total: -75 pips/ -1.0% loss
So, we took a hit, but that’s all a part of the trading game, which is why money management is so crucial and helps us to “live to trade another day.” Stay tuned!
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Trade Idea: 2008-06-10 00:13
We have a short trade setting up on USD/CHF as the pair continues to retrace higher after last week’s beat down of the US Dollar.
The rally in the Greenback has been fueled by positive housing data, weakening commodities, and commentary from Fed Chairman Bernanke on fighting inflation. Will the short term trend continue, or will we see a turn back lower, possibly on tomorrow’s US trade balance data? We’ll just have to wait and see…
On the chart, we can see the pair clearly moving higher after breaking lower on the rising trendline last week. Using the Fibonacci retracement tool, we can see the pair finding resistance at the 50% Fibonacci area and the rising, red trendline. So, we may see resistance in this area, and if the pair pops back higher to the 50% area, I think i will short there.
Short USD/CHF at 1.0335, stop at 1.0410, pt1 at 1.0260, pt2 at 1.0100
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Stay tuned for updates, good luck, and good trading!