[TW] 7-4-2011 - USD/CHF (Long) by littlebopip

USD/CHF: Daily

Long or Short: Long

Entry Point: .8575

Stop Loss: .8275

Profit Target/s: .8875

Reward-to-risk Ratio: 1:1

Risk percentage: I’ll risk 1% on this trade so I’m hoping for a 1% win if it rallies all the way up to my profit target.

Indicators used: RSI (14)

Trade Rationale: There’s a double bottom on the daily timeframe of USD/CHF and I want to go long this pair if it breaks above the neckline around .8550.

I set my entry order 25 pips above the neckline and my stop 25 pips below the recent lows. I’m aiming for .8875 because there seems to be resistance there and because the height of the double bottom formation is 300 pips.

Since the Greek austerity plans are already underway, traders could unwind their long CHF positions already. Also the SNB might be growing concerned about the recent strength of the franc and decide to intervene in the markets.

Trade Adjustments: If there’s news of something going wrong in the euro zone, like more debt problems from other countries, I’ll close my open orders/trade immediately.