Did the SNB Just Give Us A Handful of Pips?
Skerdian Meta • 2 min read
EUR/CHF has been in a downtrend since the beginning of October. The reason for this has been uncertainty in the financial markets induced by the upcoming the US presidential elections. The elections are over, the new president is chosen but this forex pair has continued to slide.
It broke below the 1.08 support level. There were rumours around that this level was the place the SNB (Swiss National Bank) had placed it intervention button. However, the price got close to it and broke below it, yet nothing happened.
This morning though, the price in the EUR/CHF chart jumped about 50 pips after dipping below 1.07. Therefore, it looks like the SNB has lowered their intervention level in a way that the market wouldn´t anticipate. These guys love to shock the forex market, if you can recall the havoc they caused in the financial world in January last year.
We opened a short term buy forex signal last night in EUR/CHF near 1.07 and this recent jump just made our morning. We closed that forex signal manually for a 16 pip profit, although the price reached the initial take profit target just in case you left the trade run its full course.
Is this the beginning of the turnaround for EUR/CHF?
This forex pair has traded between 1.08 and 1.10 for about a year, if we disregard the massive dive after the Brexit vote, so we´re at extreme lows right now and the odds for the next long term move are on the upside. That's the reason we opened a long term buy forex signal a while ago.
The technical analysis is pointing up and the SNB represents the fundamentals here, which in my opinion, are bullish as well. So, let´s give this forex trade some time to evolve and hopefully we´ll reap the benefits from it.