"Forex trading could be your key to financial freedom if you could consistently earn pips and at the same time realising the power of compounding".- Harwin Poon



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7.3

EUR/CHF is in a consolidation phase right now at 1.6490 after a hard drop yesterday. 1.6490 which is also the 76.4 fibo of 1.6416 low to 1.6667 high. 76.4 fibo is the last strong support level. (4h chart) Candle closing below it could get the price to 1.6416 (100 fibo) or 1.6350 (127 fibo); While fail to breach 76.4 fibo will resume the bullish reversal. The GBP/CHF is at the same situation as the EUR/CHF, almost identical.

On the daily chart, a bearish engulfing candle formed 3 days ago, suggesting a downtrend bias.

According to one elliot wave practitioner, it should drop atleast to the 1.62 level, before we can see a total reversal. gee... I don't know, I hope not.

On the fundamental side. US stocks rally with Dow up 126 on Monday. Bear Stearns concern eased. Swiss annual consumer inflation rate rose 0.5% from last March of zero, a continues .3% monthly increase would increase pressure for a more aggressive monetary tightening, which will force SNB to rise their interest rate. Overall, fundamentals contradict to each other. I will just stay aside, and only place small baits once a saw possible opportunity.

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Last week update:
PMTFC end the week with 3439 equity. While TN account ended with 7370.
Not much difference from the previous week results, since EUR/CHF is in range bound the whole week.

To clarify something. This blog is not set-up to compare PMTFC's account with TN's. Both strategies are different though both are hedging correlated pairs, starting equity are different, risk percent used are different and the close and opening of positions are not at same levels.

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