Wednesday November 18, 2009 - 22:03:08 GMT
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FX Times: Daily Technical Update USD/CHF Stalking Range Setup Via FX Times
November 18, 2009 (USD/CHF)
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Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
USD/CHF Nearing Support
- 4H and 1H: We established yesterady that the 1.0050 area to be support. (Refer to Daily Technical Update 11.17.2009 USD/CHF).
If the market broke 1.0200 and stayed above, it would have had a chance
to reach 1.0350. However, the bears defended this resistance and the
market declined in the Asian/European session.
- Now in the US session, we see the pair struggling to reach the
support at 1.0050. It is already showing bottoming action, although
some further decline can still be squeezed out.
- We are therefore going to prepare for the short-term bullish
scenario at the support area. Since the 1.0200 held again, we should
expect no higher than that to be the short-term projection.
- Using 2.5 x ATR below the 1.0050 powerline. We see that a
stop-placement would be around 1.0000, giving a trigger about 80 pips
of potential risk exposure and 120 pips of potential reward: a 1.5:1
ratio. Note that for a while now, traders have come to a
generalization that the ranging approach has a tendency to have lower
reward to risk ratio, but better %profitable compared to
- If bottoming does occur, and we have a rally from 1.0050, it is
likely to occur in the Asian/European session, although the trigger
could during the second half of the US session. We need to keep a close
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