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After reaching our profit target area, EUR/CHF shot back up and found resistance at the weekly trendline and 61% Fibonacci retracement line. I like another short trade in this area, especially after the overextend rally in the Euro against the Dollar and Yen. A retracement against these currencies may also translate to a retracement against the Swissy.

If half of your position didn’t close out at pt1, this may be a great opportunity to add to your position and cost average your entry at a better price.

On the fundies side, the ECB will be expected to raise interest rates on Thursday from 3.25% to 3.50%. This is currently being priced into the Euro, so we may see a drop in the Euro by the end of the week in a “buy the rumor, sell the fact” trade scenario.

So, here’s another short trade idea in case you missed the first one:

Short EUR/CHF at 1.5925, stop at 1.5980, pt1 at 1.5865, pt2 at 1.5835

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.