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
Trade Idea: 2008-06-10 00:13
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.
Stay tuned for updates, good luck, and good trading!