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!
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