NZD CHF Short Entry Taken

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.

4 Comments
  • RS2OOO
    Posted at 18:39h, 20 September

    I closed this short today for a small profit as it was clear that price action was not ready for a decent pull back. Later on in the day, price spiked up quite hard so I shorted it again as a waterfall often begins after such a move, but price found stability at a minor support so I held on for a bit longer but a retest of that level (0.7295) found support again so I closed the position for a small loss and now await further confirmation before making anymore attempts.

  • RS2OOO
    Posted at 17:28h, 21 September

    I took another shot on the short side of NZD CHF today following yet another overnight spike, but this one got sold off quicker than yesterdays so I entered short at midday with stop loss just above the 1st intraday lower high (8am BST).

    I’ve not yet decided on an exit target so will look to trail the stop loss and just monitor how price reacts at various supports. As I type this the position is showing approx 77 points profit, so I will get stop loss to breakeven now.

  • Updates on USD:CAD, NZD,CHF, AUD:JPY, FTSE & DOW Blog Trades
    Posted at 18:30h, 22 September

    […] a failed effort to get short NZD:CHF for a pull back from overbought status I closed 2 positions there, one for a small gain, the other […]

  • RS2OOO
    Posted at 18:35h, 22 September

    This position was closed today for a profit of 274 pips.