All Trade Ideas and trading scenarios found on FX360.com are hypothetical. FX360.com has not placed these Ideas in a live trading environment. Forex Trading involves high risks, with the potential for substantial losses that exceed your initial deposit and is not suitable for all persons. Past performance is not necessarily indicative of futures results.

EUR/CHF Near Opportunity to Go Long at 1.5110

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

Last updated 10/19/2009 9:02 PM EST (GMT -5) 4 Comments

• Share this:

Bradley W. Gareiss

Technical Analyst, GFT

The pair saw a large bullish move on the Weekly Chart that is now retracing back down.  The pair is now falling in the form of a possible bullish Gartley on the 4hr Chart as well.  The potential Gartley also would enter just below the 38.2% Fibonacci retracement on the Weekly Chart.

We are looking to buy the EUR/CHF if the pair falls to 1.5110 (Point D).  Point D is located at the convergence of the following levels:

We will now go over what to watch for assuming the EUR/CHF continues falling toward our entry at 1.5110.  If the pair moves down rapidly and has long bars near point D, we will not enter the trade.  Also, if the pair comes within 7 pips of reaching our entry, does not enter, and reaches T1 before entering, the trade is invalid.  The trade is also invalid if the pair rises above 1.5176 before hitting our entry.

To recap, we will look to buy the EUR/CHF at 1.5110 with our stop placed at 1.5092.  Our initial profit targets are 1.5137 (38.2% of CD) and 1.5158 (61.8% of CD).

• • 
    
  • Weekly Chart - The trade would enter at the long term 38.2% Fibonacci retracement.
  • 
    
  • 4hr Chart - Bullish Gartley; buy at 1.5110.

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

The views of the authors and analysts are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

• Share this:

Comments (4)

Johann

October 20, 2009 at 07:48 AM ET

Hi Bradley,
I just had a question regarding being on the look out for long candles as it approaches the entry level which may suggest momentum at that time and invalidate that trade. What time frame are you referring to, to see if they are present? Long candles on a lower time frame may not be represented on a higher t/f and vice versus. Thanks, love the work all you guys put into the commentary and analysis.

bgareiss

October 20, 2009 at 01:30 PM ET

Typically I watch for long bars on whatever time frame I am watching the trade on. This article should give more information on long bars as well : http://www.fx360.com/commentary/brad/2150/warning-signs-long-bars-review.aspx . Brad

phi

October 20, 2009 at 05:05 PM ET

Bradley,

This trade is invalidated correct?

Thanks

bgareiss

October 20, 2009 at 05:15 PM ET

Although it would be invalidated according to the article above, I would definitely still take this trade. It is kind of a long explanation why, but for now I will tell you this trade is still good as is. I will post an update to this trade as soon as I can. Brad

Add Your Comment

Please login to post a comment or sign up for an FX360® account.

Loading...