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Old 04-15-2008, 01:00 PM
cowpip cowpip is online now
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Re: Busy Day Tomorrow

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I have short on for GBPCHF, anyone has any close support other than 1.9620?

Today has been very tight despite the important news coming out. Is there any reason for this action?

G'day Torero... support on GBPCHF support below 9620 is pretty sparse given it's multi-year lows. I'd start basing my support levels off of daily ranges and pivot-based levels (daily and weekly pivot S/R levels). Otherwise, you have to go WAAAAY back in time to find charts that will give you references to support zones.

I think the more important news (CPI) coming out tomorrow is containing price action today on the yen crosses. I suspect if CPI increases in accordance with consensus, there may be some yen selling going on (if only temporarily). A response similar to what happened with PPI today wouldn't surprise me. But ultimately, unless the Fed starts to talk up the dollar with stiffer hawkishness, I can't see a dollar rally taking away too much from yen strength.

BTW, I won't trade this idea unless the bigger dogs do so first. Have two plans of action, and follow the one that best matches reality. Profitability in this game is all about being a reasonably good (and aggressive) sheep. You want to be as close to the leader sheep as possible. Too close or too far from the leader, and the wolves will gladly pick you off.

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