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EUR/CHF Reaches Key Support- Important Profit Target Update

Last updated 3/31/2009 8:24 PM EST (GMT -5) 0 Comments - Add your comment

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Bradley W. Gareiss

Technical Analyst, GFT

We posted a feature regarding a bullish 3 drives pattern on the EUR/CHF on March 26th (  EUR/CHF" href="http://www.fx360.com/commentary/brad/907/rare-bullish-pattern-forming-on-eurchf.aspx"> Rare Bullish Pattern Forming on EUR/CHF ).  The pattern has now completed and the trade has been entered.  However, it is still possible to enter the trade as long as the price is at 1.5117 or lower.  Of course, if the trade has been stopped out below 1.5060 by the time you read this, the trade is canceled and invalid. 

For those who have already entered the trade, the pair responded initially, but then fell back below the entry.  We were nearly stopped out at 1.5060, but the low was at 1.5061.  Our initial profit targets were based off a hypothetical point D because we cannot know where D will be until the low is made.  We hypothesized that point D would be higher than it was.  Therefore, we have to redraw our Fibonacci tool between the actual point C and point D to see our profit targets.  Since point D was lower than anticipated, the profit targets also must be moved lower.

The new profit targets are 1.5199 (38.2% of CD) and 1.5285 (61.8% of CD).  This will be the only change to this trade, because if we move below our current point D at 1.5061, it is obvious we will be stopped out.  

4hr Chart - Entry was at 38.2% retracement.	2hr Chart - Bullish 3 Drives Pattern.

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