My limit order was filled at 0.9720 but the downside had a stong follow through on good momentum and hit my initial stop at 0.9660.
Tag Archives: USDCHF
The pullback in USD/CHF was deeper as I expected while I have to admit that around 0.9718 there was strong temptation to enter long. The pice respected the minor swing lows above 0.9660 and broke the pullbacks trendline.
The upmove happened during the Asian trading hours with a wide ranging bar in the early European hours. Now I’m waiting for a pullback to enter long at 0.9720.
After a failed attempt yesterday the USDCHF broke above it’s prior high at 0.9708 with a pullback following a channel line overshoot on the 30m timeframe. The rising 30m trend channel indicates the bullish bias prior to the breakout. The 61.8% fibo resistance is still yet to break therefore I debate with myself wether to enter long at the 0.9725 or wait for a deeper correction. We are too far from the EMA50 therefore I think I stand aside for now.
The USDCHF is caught rangebound in the 0.9615-0.9710 bracket without any decent pullback since the break of the bearish trend from early December. The first target (measured move) from the trendline break is just a few pips above the current range. An upside breakout from the recent range would be a buy signal considering Friday’s inside bar. I think it is early to trade against the strong Swiss bulls therefore I wait for a breakout pullback setup at the 0.9725 level.
I entered short USDCHF in late
European trading session on a sharp pullback to the 50% fibo level.
The strong bullish momentum makes this trade risky therefore I use
a tight 30 pips stop. Even if there will be a successful bullish
trend break on the 4h timeframe I expect a pullback to retest the
According to the latest change in my trading strategy I have replaced forex majors with European currency pairs. The reason for this was that the trading in European currencies is focused in the EU trading hours (i.e. from 8am to 4pm GMT) therefore there is less chance to get stopped out in the AM and US sessions. To backup my decision I did a little research to see if the above statement is valid. The attached table shows how much the given trading session covers relative to the 24 hours ending with that session.
Based on the data presented in this table, only the Sterling (GBP) and the Canadian (CAD) are satisfying for trading in European trading hours. All the European currency pairs show better trading range distributions meaning wide high-low range in the EU trading with relatively narrow range in the AM session.
The EURGBP, GBPCHF and GBPNOK may suit my trading style the best with the EU trading hours covering more than 80% of the previous two session while the AM hours covering less than half of the range of the preceding EU and US sessions.
I will do a similar comparison of the volatility and trendiness of the there sessions.