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EURCHF - Closing Time?
By Eliseo Agas | July 24, 2007
Generally speaking, whenever I see the price exhibit weakness at key support/resistance or recent high/low levels I start thinking about getting out of the trade especially if I’m not way in the money at that particular point.
In this case EURCHF traded through the most recent daily highs made back on June 19th but failed to close above it today. The only reason I wouldn’t necessarily call the long play dead yet is because the recent directional price action still looks good on both Daily and 4-hr charts (notice smooth upward ascent since July 17th).
With that said, here is the bargain I’m going to make with myself for this trade…I’ll move my stop up to breakeven. Considering the recent action, either the buyers are committed with momentum on their side or they’ve hit a wall at the 1.6650 area. Regardless, if momentum is on their side then I don’t believe we should see the pair drift back under the 1.66 figure (I originally posted on this when it was trading just under 1.66).
If we get a rebound then it will probably want to retest the recent highs at which time it’ll either go for it and break higher or not.
Tags: dollar, forex, forex news, forex trading
Topics: Better Use Charts - Use Charts Better |
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