Pick of the Day: USDCHF - Close Trade
Close Trade: 2009-08-12 11:03
With the end of the European trading session wrapping up and the FOMC interest rate decision and statement approaching, I have decided to close my trade to avoid event risk.
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
A nice gain for the session and now I'm just waiting to see what the Fed does at 2:15 pm EST. I'm currently watching the consolidation on Cable and my next move may be there. Stay tuned!
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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.
We do have the FOMC interest rate decision coming up tomorrow, so this may turn out to be a short term trade as I may make adjustments to avoid event risk. But for now, here's what I am doing:
Short USDCHF at market (1.0827), stop at 1.0920, pt1 at 1.0750, pt2 at 1.0650
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
Stay tuned and good luck!
Related Posts:
- Pick of the Day: USDCHF - Close Open Orders 15:40 10 July 2009
- Pick of the Day: EUR/USD - Close Trade 15:12 01 May 2009
- Pick of the Day: USD/JPY - Close Trade 09:26 20 May 2009
- Pick of the Day: USD/JPY - Close Open Orders 22:42 01 July 2009
- Pick of the Day: GBP/USD - Close Open Orders 18:31 27 October 2008
Archived Comments (2)
Forex Blog: Pick of the Day
Nice trade setup as I'm also short. I went short today at the right tip of the shoulder on the 4H chart. Yesterday daily engulfing bearish bar confirm by short bias.
Nice Trade in at 1.0822 out at 1.0750. 67 Pips. Im very Happy. Thank you very much