Close Trade: 2009-08-12 11:03
It looks like the US Dollar caught a bit of bad luck against most of the majors as traders price in the possibility of the Fed keeping interest rate low in their impending decision. USDCHF fell to a low of around 1.0760 and giving me positive pips for the session. To avoid event risk I closed my trade at market.
Closed trade at market (1.0767)
Total: +60 pips/ +0.64% gain
Trade Idea: 2009-08-11 12:23
Good afternoon! There is a simple technical setup on USDCHF that I decided to take a trade on. Will the rangebound behavior continue? Check it out!
I have the four hour chart up on USDCHF, and it appears the pair has been in a range between 1.0650 and 1.0950 for the whole summer. Now we are seeing a series of lower “highs,” which leads me to believe that sellers are starting to take control of the market once again. Stochastics are indicating overbought conditions, so I have decided to take a swing trade going short. Since the pair has already tested the falling trendline, I have gone short at the market with my stop above the previous “high.” My profit target is the bottom of the range, but I may take some profit off the table at the minor support area around 1.0750.
Short USDCHF at market (1.0827), stop at 1.0920, pt1 at 1.0750, pt2 at 1.0650
Stay tuned and good luck!