We had a variety of different possible outcomes from that USD/CHF position, depending on how you handled it. I received several emails about my early exit at the .618 retracement, which wound up being the high of the move. Some of our West Coast readers weren't awake to capitalize, some were looking for the 1.2730 target and are still in the trade, some took profits with me at the 1.2567 and reentered only to be stopped. All in all, I made a little money on the trade, but it would have been a lot more had we been filled on that second entry at 1.2485. Whatever your outcome was, remember to nimble, flexible, and to not be afraid to book profits if the market starts feel off. Keep two important facts in mind. First, the market is extremely choppy. Second, the market is extremely choppy at an extremely critical juncture (which is usually the way it works). There are as many different opinions about the forthcoming dollar direction out there as traders trading it. So until we break the EUR/USD range shown at the bottom of the report, stay fluid and adaptable because many of your colleagues are banging their head against resistance, and stomping their feet on support, hoping to catch the breakout move. My bet is that the breakout move will not be an event, but rather a process, so remain nimble.

EUR/USD is holding the daily uptrend channel support, .618 retracement at 1.2640, barely. Should the 1.2600 level give way, the .786 retracement and July 26 low at 1.2560 will be the next level of contention.

Or, if the 1.2620 level holds, we are facing a 2-hour channel breakout at 1.2710 putting the 1.2800 levels back into play. At this point, it's anybody's guess. But if one of the two levels does break tonight, wait for the breakout players to get stopped out as the market retraces back to the original breakout point before you enter. But as I said earlier, don't expect the first break of either level to set the course for the rest of the year. Exiting this range will be a process, not an event, so remain flexible and book your profits when you feel the tide turning. Back tomorrow morning.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.