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 Approaching Long Term Support.

Last updated 3/5/2009 6:20 PM EST (GMT -5) 0 Comments - Add your comment

• Share this:

Bradley W. Gareiss

Technical Analyst, GFT

The EUR/CHF has formed a long term bullish butterfly pattern on the 8hr Chart.  The butterfly also converges with the 88% retracement on the Daily Chart as well.  Although we can't see this on the examples shown, this pair has moved relatively sideways since the early 1990's.  This trade takes place near the two significant lows since then, which hit in 1995 and 2001.

We are looking to buy the EUR/CHF at point D (1.4514).  Point D is located at the convergence of the following points:

The butterfly pattern shows nice convergence.  We also see good time symmetry so far, as the price is almost exactly at the CD line which represents the ideal slope to go into the trade.  However, we must warn against long bars because they could still invalidate the trade.  Also, if the pair rises above 1.4900, the trade is invalid.

To recap, we will look to buy the EUR/CHF at 1.4514 with our stop placed at 1.4415.  Our initial profit targets are 1.4667 (38.2% of CD) and 1.4790 (61.8% of CD).

Daily Chart - 88% Fibonacci retracement at entry.	8hr Chart - Bullish butterfly; buy @ 1.4514.

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.

Loading...