About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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Pick of the Day: USDCHF - Close Open Orders

Posted 15:40 10 July 2009 | Comments

Close Open Orders: 2009-07-10 15:40

Yo Yo! Man, it looks like my trade never materialized as USDCHF barely missed the 1.0950 level before dropping down to 1.0800 and beyond. Doh! It's the end of the week and time to relax the mind, and to avoid event risk as well I have decided to close out my open orders.

Close Open Short Orders on USDCHF at 1.0950. No trade.

Have a great weekend everyone!

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Trade Idea: 2009-07-07 19:55

Good evening everyone! I don't usually watch USDCHF, but the market has been rangebound for the past couple of months. With the pair rising towards the top of the range, is it time to short again?

This is a pretty straightforward play as traders haven't let the market get past 1.0950 - 1.1000 area, and with stochastics indicating the market is nearing over bought conditions we may see another reversal.

Fundamentally, both countries have their issues. The US is fighting the continuing credit crisis, rising unemployment, and the housing falling out. The Swiss have initiated currency intervention actions to weaken the Swiss Franc and prevent further damage to their economy. They have their own unemployment issues as well as we may see later today on the calendar. It's no wonder why this pair has been rangebound - traders can't decide on who has it worse!

So, I am playing a simple range play and with no major sentiment shifting data that I can foresee, I don't think there will be a break in the range just yet. Here is what I am going to do:

Short USDCHF at 1.0950, stop at 1.1050, pt1 at 1.0850, pt2 at 1.0650

Remember to never risk more than 1% on any single trade. Adjust position sizes accordingly.

For daily economic commentary, please check out Forexgump's blog.