Forex Blog - Currency Trading Online

Webinars

Free Registeration for:

Monday session
Wednesday session
Thursday session

ForeXecutor

Free ForeXecutor Demo Account

Most Popular Articles

Recent Blog Entries

Subscribe in a reader

Add to Technorati Favorites

Blog Network:

Name:
Forex Blog

Topics:
forex, forex trading, forex software

Join my network

GBPCHF Daily Forex Analysis: Breaks Higher After Touching -.0150

Blog & Emails

In yesterday's post I mentioned that some Consolidation should be seen to the top side in the coming days and weeks. Then over night the pair broke higher. So what can we expect now that it has started? Well, to start with, let’s get through today. I expect price to drop down, riding the top side of the longer top line drawn on the chart below. Then I expect price to lift higher towards the 1.6350 area. I have one BIG concern at this point. Although I really like a move back to 1.6473, that mark is a ways away. Volatility in this pair can take price on some pretty big swings as evidenced by Monday’s 365 point candle. A candle like that could easily take out the 1.6473 target without blinking.

Last night the SNB reiterated its stance on not allowing the CHF to appreciate too much, making the CHF bulls lighten up on their shorts for the pair. None the less, I would like to see a move to break the 1.6250 mark and will then start looking for longs on the pair. That mark was support before the complete route of the GBP took place Sunday during the Asian session. Few big moves during the Sunday Asian session hold. Proof is in the Bounce that followed that move.

A break below the shorter red line on the chart below may have me taking up shorts for a test of 1.6000. Hourly RSI(14) has just recently come off the 70 line so if a move to the bottom happens there is plenty of room for the indicator to aid the drop.

Comments

+/-

Write comment

Name:

Email:

Website:

Title:

UBBCode:

[b]

[i]

[u]

[url]

[quote]

[code]

[img]

Security Image

Please input the anti-spam code that you can read in the image.

Powered by !JoomlaComment 3.26

< Prev		Next >

*Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Hypothetical versus Live Results: Always assume that results shown in articles on this blog are hypothetical results. If they are not hypothetical results, they will be clearly and un mistakenly identified as "live account" results. Otherwise all studies, script analysis, trading strategy analysis and other results are HYPOTHETICAL RESULTS and not traded on a live account.

** “Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particularly trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk. Variables such as the ability to adhere to a particular trading program in spite of trading losses as well as maintaining adequate liquidity are material points which can adversely affect actual real trading results.”