USDCHF 4-08-07

4-8-07

USDCHF

There was no trade in the USDCHF on Friday. The NFP report pushed the USDCHF past the 1.2213 area of supply which had held it back for most of the week. There is an area of peak supply at 1.2245 that is not visible on these charts. I plan to short the first time up to 1.2245 for my next USDCHF trade. The first target will be 1.2213 which is now acting as support. The next target is 1.2166 which is where the breakout happened on Friday. I will use a sell stop to enter, and I will put the stop loss to entry once the USDCHF reaches the first target. If this is the beginning of a dollar move higher, the area of supply at 1.2245 will need to be absorbed, and the USDCHF will stay near it to absorb the supply before moving higher.I will use a 10 pip stop loss once the trade is entered and a 10 pip trailing stop in case that is what the USDCHF attempts to do.