Partner Center Find a Broker

Trade Closed: 2008-03-19 18:21

Our trade went our way throughout the Asia/Euro trading session (hitting our first profit target along the way), but after testing .9900, the pair rallied and closed out our remaining position.

1st half: +80 pips
2nd half: +00 pips
Total: +.40% gain

While I think the US Dollar will continue to lose out to the Swiss Franc on interest rate differential and carry unwind, I think it’s going to be a battle for direction in the short term…possibly until we see the end of the US interest rate cuts. I hope everyone did well on this simple trade. Stay tuned for a new trade idea tonight!

Trade Idea: 2008-03-18 23:50

PoD Chart

Pretty simple trade idea tonight after today’s highly anticipated interest rate cut from the Fed. We saw a rally in USD/CHF leading up to todays Fed decision, but with the US Dollar pulling in interest now lower than Swiss Franc I think this pair may fall even further after this breather.

The pair is currently trading below parity, around the 50% Fibonacci retracement level drawn on the chart. There’s no major event news for either the USD or CHF, so I think parity will hold as resistance and as technical levels may play out strongly today.

Short USD/CHF at market (.9980), stop at 1.0080, pt1 at .9900, pt2 at .9800

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

Good luck, good trading, and stay tuned!

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.