Monday, February 16, 2009

USD-CHF Channel (Update)

USD - CHF has neared the bottom of the channel. A long position can be initiated here, simply because you can then keep a defined stop of 70-80 points as a conclusive break of support.The bounce back might net you anywhere between 100-300 pips. This is why technical traders look for setups, you have a reason to enter a trade & know where to put your stops.

On the other hand, my feeling is that this time round the support might not hold. Lets see price action develop. One can take large sized shorts if 1.1520-30 gets taken out for a large 400-500 pips move.

But i will still go ahead with the long trade with appropriate stop in place.