EUR/CHF To Resume Uptrend At 1.5055?

2 Comments

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Last Updated: 10 min ago

The EUR/CHF began a bullish trend line almost exactly one year ago today. The pair is now falling in the form of a possible bullish butterfly on the 4hr Chart. The pair has already seen support near the entry for this pattern. If the pattern completes as drawn, the trade would enter at the bullish trend line on the Weekly Chart. This is a textbook setup according to our trading methodology.

We are looking to buy the EUR/CHF if the pair falls to 1.5055 (Point D). Point D is located at the convergence of the following levels:

  • 127.2% Fibonacci extension of XA.
  • 161.8% Fibonacci extension of BC.
  • AB=CD.
  • Bullish trend line on the Weekly Chart.
  • If RSI falls below 30.
  • We will now go over what to watch for assuming the EUR/CHF continues falling toward our entry at 1.5055. 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 8 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 1.5170 before hitting our entry.

    To recap, we will look to buy the EUR/CHF at 1.5055 with our stop placed at 1.5031. Our initial profit targets are 1.5090 (38.2% of CD) and 1.5117 (61.8% of CD).


      • Weekly Chart - Trade would enter near the bullish trend line on the Weekly Chart.

      • 4hr Chart - Bullish butterfly; buy at 1.5055.

    Comments (2)

    AndrewB
    November 02, 2009 at 03:00 PM ET
    Brad,

    Didn't this trade get invalidated on 10/30 at 1.51705?

    Not sure if the trades to watch list just hasn't been updated or whether there are extenuating circumstances...

    Thanks.

    Andrew
    bgareiss
    November 02, 2009 at 04:34 PM ET
    It is invalidated but I was out of town and had not updated the trade tracker. It will shortly be up to date. Brad

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    QUOTEBOARD

    • Key Quotes
    • Currencies
    • Markets
    •  
    • current
    • high
    • low
     
    • EUR/USD
    • up
    • 1.3650
    • 1.3656
    • 1.3620
    EUR/USD
    5 min chart
    • GBP/USD
    • down
    • 1.5004
    • 1.5007
    • 1.4945
    GBP/USD
    5 min chart
    • USD/JPY
    • up
    • 90.46
    • 90.51
    • 90.20
    USD/JPY
    5 min chart
    • OIL
    • up
    • 79.77
    • 79.77
    • 79.77
    CLH0
    5 min chart
    • GOLD
    • up
    • 1107.0
    • 1111.2
    • 1105.0
    .GOLD
    5 min chart
    • US Stocks
    • down
    • 10557
    • 10569
    • 10523
    .US30
    5 min chart
    • UK Stocks
    • down
    • 5635.5
    • 5638.0
    • 5611.5
    .UK100
    5 min chart
    • DEM Stocks
    • up
    • 5941.8
    • 5943.8
    • 5900.0
    .DE30
    5 min chart
    • JP Stocks
    • down
    • 10676
    • 10681
    • 10571
    .JP225
    5 min chart
    •  
    • current
    • high
    • low
     
    • EUR/USD
    • up
    • 1.3650
    • 1.3656
    • 1.3620
    5 min chart
    • GBP/USD
    • down
    • 1.5004
    • 1.5007
    • 1.4945
    • USD/JPY
    • up
    • 90.46
    • 90.51
    • 90.20
    • USD/CHF
    • down
    • 1.0700
    • 1.0726
    • 1.0696
    • USD/CAD
    • down
    • 1.0262
    • 1.0269
    • 1.0245
    • AUD/USD
    • down
    • 0.9162
    • 0.9165
    • 0.9113
    • NZD/USD
    • down
    • 0.7002
    • 0.7017
    • 0.6974
    • USD/MXN
    • up
    • 12.6092
    • 12.6152
    • 12.5925
    • EUR/JPY
    • up
    • 123.49
    • 123.56
    • 123.01
    • GBP/JPY
    • up
    • 135.73
    • 135.78
    • 134.90
    •  
    • current
    • high
    • low
     
    • OIL
    • up
    • 79.77
    • 79.77
    • 79.77
    5 min chart
    • GOLD
    • up
    • 1107.0
    • 1111.2
    • 1105.0
    5 min chart
    • SILVER
    • down
    • 16.958
    • 17.058
    • 16.815
    5 min chart
    • US500
    • up
    • 1144.1
    • 1145.9
    • 1139.9
    5 min chart
    • UK Stocks
    • down
    • 5635.5
    • 5638.0
    • 5611.5
    5 min chart
    • DEM Stocks
    • up
    • 5941.8
    • 5943.8
    • 5900.0
    5 min chart
    • JP Stocks
    • down
    • 10676
    • 10681
    • 10571
    5 min chart
    • AU Stocks
    • up
    • 4818.5
    • 4841.5
    • 4803.5
    5 min chart
    Data source: GFT

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