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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May 2006

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Pick of the Day: USD/CHF

Posted 23:23 02 May 2006 | Comments

Tomorrow morning we have several US economic reports coming out. I'm going to focus on the Factory Orders report at 10:00 am EST, so I will place my orders at the beginning of the US trading session at 8:00 am EST. The consensus number is at about 4.0% with the previous at 0.2%. Quite a difference! US ISM Non-Manufacturing Index is also being released at that time, so we'll see how the two reports will affect the market. We should definitely see some movement around this time regardless of a surprise number or not. I'm really expecting for us to enter in a short trade to trade with the trend, but here are a couple of ideas to be ready for whatever the market gives us:

Long USD/CHF at 1.2455, stop at 1.2415, PT1 at 1.2471, PT2 at 1.2500

Short USD/CHF at 1.2315, stop at 1.2355, PT1 at 1.2290, PT2 at 1.2255

We have Big Ben Bernanke speaking tomorrow at a local economic summit at 12:00 pm EST. I recommend closing all open orders at this time, or if we are in a trade, to close positions or tighten stops to lock in profit.

Good luck and good trading!