Forex Trade Idea #111: Short USDCHF (Closed -82)
Wednesday, February 17, 2010 11:05
Our first attempt to short USDCHF was canceled because instead of this pair breaking down from the support line, it went back up to break above 1.08. USDCHF tried to hold above 1.08 but failed so it went back down to retest the support line and then pierced through it.
Now how do we trade this? You can either place your sell limit at 1.0715 (38.2%), 1.0735 (50%) to 1.0760 (61.8%) or sell on breakdown from the bearish flag pattern. If the price closes below 1.0650 in the 15-minute chart, that is a sell for me. Place your stop at 1.0797 and as for the target, you can take your profits at 1.0565 (38.2% in the 4 hour chart) and 1.0345 (MA (800)). Move stops to breakeven on 60pips profit.
Trendline break. Descending Triangle breakdown. Bearish Flag Pattern.
Sell limit 1.0715 (38.2% ), 1.0735 (50%) to 1.0760 (61.8%)
Stop at 1.0797
Target 1.0565 (38.2%) and 1.0345 (MA (800))
Bearish RSI Divergence
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