USDCHF 1-23-07

1-23-07

USDCHF

The USDCHF never quite reached the 1.2466 area for a long trade yesterday but it did get close enough to be considered a first time back to the area of demand. I will still buy the pullback to 1.2466 using a buy stop once the USDCHF trades below 1.2466 as long as it reverses higher before it trades down to the next area of demand at 1.2451. I will not buy the pullback to 1.2451 since it has been tested several times. The currencies are going to leave these tight ranges and I would like to avoid a long entry in the USDCHF in case the next move is lower. Use a 10 pip stop loss if there is a long entry. The first target is 1.2500. Trail the stop loss by 15 pips once the first target is reached.