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7.12 EUR/CHF analysis

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5:30am EST- EUR/CHF 4hr chart:
Ascending channel formed. Price right now is in the middle of the channel, Price usually bounce from this middles. Both indicators showing overbought.

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On 1hr chart. Price is in a ranging mode, going up and down in between 1.6560 to 1.6580. Both Stoch and CCI are near overbought area, ADX shows low momentum.

Here's what I'll do. Place a horizontal lines at 38.2 fibo (1.6580) and 50 fibo (1.6550). The 2 lines will be my resistance & support levels for now. Break of the upper line, I'll open both long positions with 3% or 5% risk on EUR/USD and USD/CHF, by using Freedomrocks software (for PMTFC acct) and True North Calc (for TN acct) to compute the proper lot size to allocate for the hedge trade. First TP (target) is the 23.6 fibo on 4hr chart, I will close both long positions on the touch of 1,6612 level and 2nd TP is on the 4hr upper channel.

If price breaks the 50 fibo level down, I might open both short positions with only 1% (dependes on what indicators are showing when it reach that level), using also the same instruments mentioned above to calculate the lot size to hedge. TP will be the round number 1.6500 or lower, depends on indicators.

If price bounce off the lower channel on 4hr chart, I'll go for a long hedge (depende on indicators), Then from there... I'll open a long hedge positions with TP on the upper channel.

From what the indicators are showing right now. I think EUR/CHF will make a corrective down before it rally to the upside.

Note: Daily chart is still bear bias unless price closed higher than yesterday close price.


Nice trade yesterday. I captured the rally up and scalp the up and down ranges. Nice results will be seen by PMTFC pool members this weekend.

Caffeine shots has nothing to do with the good results, 'coz not a single soul is kind enough to treat me a shot (lolz), Hey! IP address ending with 14, You owe me a drink (lolz). hmmm... probably the inspiration I'm getting from my new found Canadian gal. I love you Lorie! ;-)