USDCHF 12-3-06

12-3-06

USDCHF

The last time I sent an email on USDCHF was on 11-30-06. I mentioned an area of demand at 1.2040 inside the big trading range between 1.2000 and 1.2100 that could produce a bounce. That bounce at 1.2040 did happen, but as soon as the USDCHF hit the 1.2072 breakdown area, it was look out below. Unfortunately, I did not mention taking a short trade at 1.2072 in the first email, but I did mention it to the traders in the forex chat room later that morning. There has been no let up in the selling of the USDCHF since, and no other pullbacks to enter a short since the start of the recent move down. I would enter a short trade at 1.1986 if the USDCHF manages to rally up to that breakdown area. The first target is 1.1900 and the second target is 1.1850. Use a 10 pip stop loss after entry and a sell stop to enter the trade after the USDCHF trades above 1.1983.