20 Sep NZD CHF Short Entry Taken
I’ve opened a highly speculative short on NZD CHF today.
I’ve traded the short side of this pair quite successfully over the last year but price is now at a level where it needs to decide which way it’s going to go.
There is no mistaking the fact that the weekly trend is down and has been for some time. The huge rally we’ve seen certainly looks like a convincing trend change on the daily chart but the bigger Weekly and Monthly picture is still down, therefore, as smaller time frames are looking overbought, I’ve entered a small short at the weekly 200MA in expectation of a pull back to correct these overbought conditions.
Stop loss is initially set just above todays high and I feel that the odds are not necessarily in my overall favour but I do like the potential of risking a small loss on a trade that could yield 200 points profit over the next few days if a pull back materialises.
Price has broken out of it’s weekly channel which is a real sign that the main trend has changed, but it is also a sign that we may be due a few days of profit taking.