The EUR/CHF pair has been volatile over the last several hours, but keeps finding support at the 1.0660 area. The market has been very stubborn as far as sellers are concerned, as the Euro is continuing to find footing against some currencies while the markets continue to be difficult for Euro traders.
Risk 0.50%
Trades can be taken during Asian and European hours
Long Trade 1:
Buy EUR/CHF at 1.0675
Stop loss at 1.065
Take half profit at 1.07, moving stop loss to break even
Take full profit at 1.0740
EUR/CHF Analysis:
The pair seems to be trying to find a bottom. Ironically, the Euro could be the Franc’s biggest problem, and by extension – the pair is rising. The reason I say this is that 85% of Swiss exports end up in the European Union, and while there is a lot of negativity when it comes to the EU, the EU still has Germany, while Switzerland has nobody but themselves. In a sense, I think this is one of the few pairs that could ‘buck the trend’, at least in the short-term.
One other thing that you should keep in mind is that the Swiss National Bank has been active in this pair several times in the past, so it’s possible that the Swiss are also quietly working in the markets.
