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Close Open Orders: 2008-02-28 10:05

EUR/CHF continued its trek lower in overnight trading without making any kind of retracement back up to 1.61. I am going to close my open orders and see how the pair reacts at 1.6000 before taking another look at EUR/CHF.

Close open orders to short at 1.61

Stay tuned as I am currently watching EUR/CAD as its rally from 1.47 may have lost some steam.

Trade Idea: 2008-02-27 16:10:32

crosseyed chart

Momentum has brought EUR/CHF back to a support area just about 1.6050. With a break below the rising trendline, this pair may be poised to continue its move lower.

Fundamentally, Eurozone has recently seen positive data, but the focus for the next day or two in currencies should be the Greenback and Fed Chairman Bernanke’s testimony to the US Congress. Speculation on another US rate cut was ramped up today and currencies were shaken up as the Dollar sold off.

After closing below the trendline on the 4hr chart, the pair has ranged between 1.6050 and 1.6100. If we see it make its way higher to 1.61, we will short there and target the previous support areas at 1.6000 and 1.5950.

Short EUR/CHF at 1.6100, stop at 1.6180, pt1 at 1.6005, pt2 at 1.5950

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

Good luck and stay tuned for updates!

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