EURCHF has been in a range between 1.0730 and 1.0840 for the past 3 months.
Right now, it seems that sellers have good momentum and may attempt to break this range.
If we have a look at the recent action, we can understand that, for this kind of trade, it is very easy to place our entry and exit points, but we are at the very limit with our risk to reward ratio.
Stop loss: there is a very important swing high, highlighted in red in the chart, so we want to try to place our stop loss above it.
Take profit: we can apply the measured move on the width of the range and see the potential of this breakout.
Entry: ideally, we would like to wait for a good confirmation of the breakout of the level around 1.0730, so a good entry point would be around 1.0720. The one that I place for this trade, 1.0727, in theory, is not a great entry, since it is very close to the level 1.0730, but it allows me to have a good risk to reward ratio above 1:2, so I'm going to take the risk and place my entry about 7 pips higher than the normal entry (which would have been at 1.0720).
Good luck!
Right now, it seems that sellers have good momentum and may attempt to break this range.
If we have a look at the recent action, we can understand that, for this kind of trade, it is very easy to place our entry and exit points, but we are at the very limit with our risk to reward ratio.
Stop loss: there is a very important swing high, highlighted in red in the chart, so we want to try to place our stop loss above it.
Take profit: we can apply the measured move on the width of the range and see the potential of this breakout.
Entry: ideally, we would like to wait for a good confirmation of the breakout of the level around 1.0730, so a good entry point would be around 1.0720. The one that I place for this trade, 1.0727, in theory, is not a great entry, since it is very close to the level 1.0730, but it allows me to have a good risk to reward ratio above 1:2, so I'm going to take the risk and place my entry about 7 pips higher than the normal entry (which would have been at 1.0720).
Good luck!
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