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Trade Closed: 2007-06-08 10:45

Bullish dollar sentiment remained strong as we saw a push in dollar buying durning the European trading session. Our long orders at 1.2280 was triggered and both profit targets were easily hit as USD/CHF rallied into the US trading session.

So, we got off to a rocky start, but we managed to end the week with a winning trade, and only down 25 pips for the week. It’s been a volatile market and hopefully we will get the same action next week. Until then, have a great weekend!

1st half: +20 pips
2nd half: +40 pips
Total: +60 pips

Trade Idea: 2007-06-08 00:10

PoD Chart

The focus for USD traders today will be the US Trade Balance report, which is set to be released at 8:30 am EDT. The key component traders will be watching for is if the uptrend in exports continue.

Right now, the market sentiment is on the Greenbacks side as the possibility of a Fed rate cut is thrown back further into traders minds. If the trade deficit decreases we will definitely see a further rally up to the previous resistance point around 1.2330. A further increase in the deficit should cause a short term drop in the pair, probably back to the previous swing low around 1.2150.

So, we will prepare for a trade in both ways:

Long USD/CHF at 1.2280, stop at 1.2240, pt1 at 1.2300, pt2 at 1.2320


Short USD/CHF at 1.2230, stop at 1.2270, pt1 at 1.2200, pt2 at 1.2150

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

Good luck and good trading!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.