Here are a few of the currency pairs I’m currently monitoring.
On some of them I’m already trading/looking for a trade opportunity, while on others, I need to wait for the market to do “something” before I start looking for a trade opportunity.
But there is something in common on all of them: CLARITY.
Clarity trumps everything in forex.
What do I mean by clarity?
It’s how clear the analysis of a currency pair is. Is it clear that the market will move up? or down? Or I have absolutely no idea of what the market is going to do?
Of course, if there is no clarity, there is no point on trading that particular currency pair, you have no idea of where it is heading right?
Clarity is so important when trading the forex market, that it can help you get good results even when you don’t have a good entry system, patience, etc.
Here is what I think.
The USDCHF it’s been falling down since the first days of August, it broke through an important support level, but now it looks like it is being rejected from an important support level.
How do we make sure it is a valid rejection?
Well, it already broke The SF Box, take a look at this chart:
Hey, how was your weekend?
In a recent article I wrote about the EURUSD (and therefore the USDCHF). The way the EURUSD looked back then was terrible, no clear support and resistance levels, it was trading in an unclear and undefined range.
How on earth are we supposed to trade it that way?
But now things are different, the EURUSD broke through an important support level, and this puts it into a clear bearish condition. Let me show you my chart so you can see what I’m talking about:
Now you are with me, aren’t you? Or not?
So for now, I’m going to be looking for short opportunities on the EURUSD (and therefore I’ll also be looking for long opportunities on the USDCHF).
Are you with me?
Have a great week ahead!
Hey, how is your trading going this week so far?
Last week I wrote about the USDCHF, I really felt comfortable shorting it, and I did take a short (I’m still holding it) and let me tell you something, just got another signal to go short:
Now, there are two things worth mentioning:
- Possible intervention of the Switzerland National Bank. Actually, there are intervening on the EURCHF not on the USDCHF. Take a look at it, at the daily chart, it is obvious that something is going on there. Now take a look at the swissy, its clear and its moves are smooth.
- Is scaling in a good possibility here? I really think so, the best moment to scale in is when the market moves on your favor, it is telling you: Hey, you probably made the right decision here, why not adding more? On the other hand, I think the worst moment to scale in (average down) is when the market goes against you. You are increasing the size of a trade that is not behaving the way you though it would behave.
What do you think?
I’m asking you this because of a possible Swiss National Bank (SNB) intervention. But let me tell you something, they didn’t intervened on the USDCHF, but in the EURCHF.
If you take a look at both daily charts, you’ll see a big difference from one chart to the other. The EURCHF looks artificial, while the USDCHF is smoother, just like any other currency pair.
If the SNB intervenes on the EURCHF, yes, it will hurt my trade, but I don’t think they will allow the EURCHF to fall below 1.2… What do you think?
Anyway, the USD CHF just broke through an important support level, it’s one of the currency pairs I’m currently monitoring and I will be looking for short opportunities as long as it trade below 0.9094:
<img class=”aligncenter size-full wp-image-3802″ title=”usdchf61″ src=”http://www.protradingnow.com/wp-content/uploads/2012/02/usdchf61.png” alt=”” width=”351″ height=”373″ />
Are you with me?
Are you still bullish on the USDCHF? Because I am, I still think it is on its way up to hit the next LT resistance level which is at 0.9737, but only time will tell. Here is the chart:
I liked the way it was rejected from the ST support level (previous ST resistance level), plenty of upward pressure around that level, which is good if you are bullish on this pair.
What do you think? Was it a good idea?
Let me know.
First of all, hope you all had a great weekend! Mine was a little unusual, I ran a marathon and as you may have guessed, my legs still hurt, but it doesn’t matter, being at the finish line makes it all worth it! You should try it!
Anyway, as I told you last Thursday, I wasn’t going to trade on Friday because of the European summit, and earlier today I saw there were no big changes… did you trade last Friday?
Today, one of the currency pairs that I like the most is the USDCHF, just broke through an important resistance LT level as well as another ST resistance level, so it has a good possibilities of continuing its way up. Here are the LT charts:
As long as the USDCHF keeps trading above 0.9325 I’ll be looking for long opportunities.
My next LT resistance level is at 0.9737
Hey, what do you think about the USDCHF? I think it has a good possibility to continue its way up, it clearly got rejected from an important support level on the long term charts and right now its trading around an important ST support level, I’m giving it a try…
Here are the details of my order:
- Entry order: 0.8972
- SL: 0.8911
- TP: 0.9274
Like the risk reward ratio :)? I do…
Take a look at USDCHF’s today’s range:
It’s probably the tightest range I’ve ever seen on the USDCHF on a normal trading day (no holiday). How are we supposed to trade this range?
Most currency pairs traded in a similar range today.
Did you take any trade today? I didn’t…
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As we were wrote on our post yesterday, its clear that most CHF crosses are retracing back, and you know something… I want to be part of it. Just decided I’m going to help the Swiss National Bank to depreciate their currency pair, you know… so they are more comfortable :)
Anyway, I got my signal to go long on the USDCHF:
Here are the details of my trade:
Have you noticed the risk reward ratio of this trade?