My long EUR/CHF trade was triggered at the beginning of the European trading session, but better than expected Swiss Trade Balance and Retail Sales data boosted the Swiss Franc higher.
EUR/CHF found a high around 1.5530 before the news pushed the pair down to a low around 1.5300 and triggering my stop loss along the way.
Total: -150 pips/ -1.0% loss
So, I took a small hit on my account, but I think I’m going to jump back in on the other side. As a user pointed out in the comments section below, EUR/CHF is breaking a rising trendline on the Daily charts.
If the markets turn to a risk aversion attitude and fall back to the Swissy for safety, this break could turn into a nice move lower. Also, another speculation of further rate cuts from the ECB will also support a move lower as well. Stay tuned for another trade idea on EUR/CHF.
Trade Idea: 2008-12-17 19:35
Greetings! Got some simple long technical setups forming on EUR/CHF as the retracement appears to be slowing down. Time to swing higher?On the four-hour chart, EUR/CHF is still trending higher. This retracement down to 1.55 may be a bit oversold according to stochastics (14, 3, 3 settings), and as the pair touches the 61% Fibonacci level.
The previous bar formed a doji candle – a possible reversal signal. I’d like to go long above the previous bar highs and target the previous swing highs just below 1.59. Here’s what I’m going to do:
Long EUR/CHF at 1.5500, stop at 1.5350, pt1 at 1.5650, pt2 at 1.5900
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
A pretty simple setup, right? Let’s see how it plays out! Stay tuned!
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