Our EUR/CHF short entry into the .618 ret, neckline test at 1.5965 was a clean, high-bid entry. Price moved lower to shoulder line support of 1.5940-44, before moving back up to our entry. What was nice about this trade was that we exhibited patience by demanding a nice, tight entry into technical resistance. The chance we took by offering into resistance, and not initiating the trade at the time, was that the trade plays out without us onboard. But, if you are willing to accept that chance, entering at premium technical levels allows you to keep stops small and close more trades out at a scratch, or with small profits, on trade ideas that didn't play out according to plan. I'm flat EUR/CHF after scratching the trade.

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

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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.