Long or Short: Long setup on the 4-hour chart
Entry Point: Market (0.9225)
Stop Loss: 0.9180 (below previous resistance, .9200 handle, and Fib and trendline support)
Profit Target: PT1: 0.9350 (previous high), second position
Risk Ratio: At least 2.77 (for the first position). Could be more if I trail my stop on the second position.
Risk involved: 1% of account (2 positions)
Indicators: Stochastics (14,3,3)
Technical - potential support at
a. .9200 level
b. rising trendline
c. Fibonacci retracement levels
a. We’ve only seen a pullback (instead of a reversal) on the dollar’s rally. Positive reports from the U.S. will soon boost the dollar again.
b. The SNB didn’t raise its floor on EUR/CHF, which caused weakness in the franc yesterday
If the pair moves in favor of my direction and hits PT1, I will lock in a few profits on my second position and trail my stop by 50 pips. I will close my trade when the U.S. starts printing weak data consecutively, or if market sentiment is clearly against the dollar.