Tag: CHF Crosses

More on CHF crosses (and EURCHF)

It’s obvious that most CHF crosses are having a retracement, especially after all the SNB talk about a possible intervention and an eventual Euro peg (if CHF crosses continue to appreciate). Well, all these talks have leaded most CHF crosses to a retracement… and if they are to retrace, most them have enough room to get a nice trade out of them…

As I have mentioned before, based on the current conditions, it is only recommended to choose one CHF cross to trade, because you open more than one trade, you are going to get the same result on all of them, and if you take more than one trade, you’ll end up risking more than you feel comfortable with.

Anyway, I would favor the EURCHF here. It still has around 500 pips before it hits the next LT resistance level and it is trading above every important level on the short term charts:

I’ll be looking for long opportunities in the EURCHF as long as it trades above 1.1267

Trade Safe!

Raul Lopez
Forex Training

CHF Crosses, EURCHF Analysis

SNB and CHF appreciation

Today I’ve read two articles about the Swiss National Bank concerns about the CHF appreciation:

First one“Switzerland’s central bank said yesterday it will increase the supply of francs to fight the currency’s massive overvaluation.”

So they are using the exact same strategy the Bank of Japan does, the question here is, will it be as unsuccessful as the one used by the BOJ? I think it will. A currency pair goes up or down based on the supply/demand for it, if it is going up these days its probably because traders and investors see the CHF as a safe haven, as a reserve currency, and whatever the monetary instrument they use to stop the overvaluation, sooner or later the market will correct and continue in the direction of its sentiment (which right now is CHF bullish), that’s exactly the market job.

The second one: “some economists have said the franc’s surge toward euro parity is adding pressure on the SNB to consider a peg for the first time since the Bretton Woods currency system was abandoned in 1973.”

Now, this one could stop the massive overvaluation (still they will need to intervene), but it would be very drastic measure. With this announcement, they are following again the BOJ steps, I think they were just trying to “influence” investors, and see if they could stop them from getting CHF instruments.

This is just my opinion, only time will tell what destiny has for the CHF.

Trade Safe!

Raul Lopez
Forex Course

CHF Crosses, Fundamental

CHF and its crosses

Have you noticed that the CHF has been going up on all its crosses?

GBPCHF, EURCHF, USDCHF: Trading around historical lows
CADCHF: Trading close to historical lows
NZDCHF: Trading in a clear bearish condition
CHFJPY: Trading in a bullish condition

Seems like most investors and traders see the CHF as a safe heaven? Could be, especially after the debt crisis in Greece and other counties in the zone…

Trade Safe!

Raul Lopez
Forex Training

CHF Crosses