{"id":15033,"date":"2010-11-05T08:41:36","date_gmt":"2010-11-05T12:41:36","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15033"},"modified":"2010-11-05T08:41:36","modified_gmt":"2010-11-05T12:41:36","slug":"eurchf-long-term-trade-with-the-trend","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/05\/eurchf-long-term-trade-with-the-trend\/","title":{"rendered":"EUR\/CHF \u2013 Long Term Trade with the Trend"},"content":{"rendered":"<p><strong>By Russell Glaser<\/strong> &#8211; For the past 2 months the EUR\/CHF has made a correction in the long  term downward trend. But the failure of the pair at the 200-day moving  average line shows the upward momentum has stalled. This presents an <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2010\/11\/04\/usdchf-%e2%80%93-short-on-the-pair\/\">opportunity to trade <\/a>with the long term trend.<\/p>\n<p>The EUR\/CHF corrected more than 50 % of the late May to early September move.<br \/>\nBut the correction looks to have halted near the 200-day moving average  line. As such, the long term bearish trend should resume.<\/p>\n<p>A signal to enter the trade may be taken from two places. The first  may be a close below the 20-day moving average line. This moving average  line previously served as a nice support during the correction and  could also later act as a resistance in the future.  The second signal  may be given when the RSI (14) breaches below the rising trend line.<\/p>\n<p>The first support level (S1) is found near 1.3460, the 38.2%  Fibonacci retracement level from the late May to early September move.<\/p>\n<p>A protective stop can be placed above the significant technical  barriers of the 200-day simple moving average, the current downward  sloping trend line, and the 61.8% Fibonacci retracement level of the  late May to early September move. The stop should be located just above  the August pivot of 1.3920. This would give a risk of roughly 350 pips.  Should the pair close above this level it would signal a shift in the  long term trend to the upside.<\/p>\n<p>Traders can target a level above the swing low for the pair at  1.2760. This would give a potential profit of approximately 700 pips and  a decent profit to risk ratio of 2 to 1.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/11\/EURCHF-Daily.JPG\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/11\/EURCHF-Daily.JPG\" alt=\"\" width=\"567\" height=\"681\" \/><\/a><\/p>\n<p><em><strong>Forex <\/strong><strong>Market Analysis provided by <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">ForexYard.<\/a><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                                                                                                                    may     not      be                   suitable         for         all                              investors.                  There          is    a                                                      possibility                   that                            you               could                        sustain  a        loss              of     all            of              your                                              investment       and                                       therefore     you                                should         not                      invest                         money         that           you                                cannot                    afford  to                           lose.      You                              should          be                aware            of                    all             the            risks                                      associated               with                   Foreign                          Exchange                               trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the past 2 months the EUR\/CHF has made a correction in the long term downward trend. But the failure of the pair at the 200-day moving average line shows the upward momentum has stalled.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15033","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=15033"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15033\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}