Thursday, January 7, 2010

EURCHF—found support?

I shorted this pair at 1.4928 on Monday. Since then, it dropped to a low of 1.4766 but seems to be bouncing a bit. There’s a rather impressive hammer on the hourly chart. That price level is support going back to December 2008. While it looks as though the Swiss Central Bank has at least temporarily abandoned its intervention efforts for the Swissy, I’m not comfortable leaving a lot on the table. I took partial profits at +100 pips this morning and will probably close out the rest of the trade today, depending on price action. Here’s the daily chart:

© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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