Friday, August 26, 2011

USDCHF and EURCHF

Well, there have been few trades worth considering for the past couple of weeks, but the meeting of Ben Barnake et al at Jackson Hole in Wyoming has finally set things in motion.  I decided to sell USDCHF and EURCHF (double exposing myself to CHF) because they have been retracing for awhile now and I think are ready to resume their strong downward trend.  The charts for these two pairs look very similar with both starting to reject price at an important S/R level.  The H4 charts show pinbars on both pairs at this S/R level.  There is an element of risk to these trades since there are rumors of the SNB stepping in with an intervention to drive down their currency's value (there are always rumors of that though)...frankly, I doubt it will happen, because the price is actually quite a bit lower than it has been for a while now.  The other aspect of my risk is that I double exposed myself to CHF, but my lot size is very small and I think I have good potential of winning these trades or I wouldn't have taken  them in the first place.  So, if I do win, I am double exposed to winnings also...we shall see what happens.

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