The remainder of my trade stopped at breakeven. I shorted as it approached the high of this narrow range at 1.4040 and set my profit target at 1.4008 which was hit overnight for +32 pips. I have just taken a small long position at 1.4007.
If the SNB does intervene then the pair will break upward of this narrow range of 1.4000 to 1.4007. If they don’t then it should eventually break below. There is no nearby support if it does break below so you want your stop tight if you’re long. Shorting rallies is probably safer but with low profit potential if it's in this range. However you'd still want tight stops as intevention will cause a big spike.
© 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.