Since the bank of Switzerland intervention blast year I haven’t placed a trade on the EURCHF. And I really missed it, it was a good cross, it had nice swings, and most of the time they were smooth.
Do you think it will good for trading some day? Or have you even placed a trade here since the intervention?
Take a look at it now:
It is getting closer to the 1.2000 level, remember the bank of Switzerland said it will not allow the EURCHF to trade bellow 1.2000? Do you think it will intervene again? I think so… So for now, I’m just going to forget about the EURCHF and focus on other crosses.
bank of switzerland, EURCHF Analysis, forex, intervention
Yeah, that’s right… its CHF crosses time again… Most CHF crosses retraced back after the SNB intervention a few weeks ago, but as I said before, the market is the market, and it doesn’t matter what a central bank says, how many times they intervene, the market will always move based on supply and demand, and it looks like the demand for CHF crosses its increasing again…
Most CHF crosses got rejected from an important resistance level and looks like all of them will continue to appreciate. Take the EURCHF for instance:
The next support level is at 1.0245, more than 1000 pips (not a typo) from that level! So what am I going to do here: LOOK FOR SHORT OPPRTUNITIES!
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EURCHF Analysis, forex, trading
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
CHF Crosses, EURCHF Analysis
All these crosses are trading in a very clear bearish market condition, and I will be looking for short opportunities and all of them. But you need to remember something, all of them have a degree of correlation, so although I’m looking for trade opportunities on all of them, I will only trade one.
What happens if I take a trade on two of them? I’m likely to get the same result on both of them, and I wouldn’t mind if the market goes on my favor, but what would happen if the market goes against you? I’ll be risking more than I’d like to on a single currency.
That’s the reason I recommend to trade only one of them!
Are you trading these crosses?
CADCHF Analysis, EURCHF Analysis, GBPCHF analysis, USDCHF analysis