EUR/CHF – A Great Buying Spot
Skerdian Meta • 2 min read
Yesterday we had two winning forex signals in EUR/CHF, which we opened near the bottom of the recent range in this forex pair, but that´s not all. We also had three winning EUR/CHF signals last week, so that makes it five signals in total in this pair and around 100 pip in profit in the last 6-7 trading days. We have quite enjoyed these EUR/CHF signals, haven´t we?
Since the price in this forex pair broke below 1.08, which has been the bottom of a 200 pip trading range, a new range has formed and it has been very tight. Since Monday last week, this pair has traded between the 1.07 and 1.0740-50. It has dipped twice to 1.0685, but 1.07 has been the bottom, give or take 10-15 pips either side.
All of our recent forex signals here have been buy signals, obviously, but why do you think that is?
Well, I was watching the price action in this pair earlier this week when I saw it jumping around 50 pips, which might have seemed strange to some. I knew that the SNB (Swiss National Bank) was intervening in the forex market by buying the Euro against the CHF. Right then, I decided to buy this pair around the 1.07 level as a short-term trading strategy, since the SNB had established a new bottom where they were willing to fight the market back.
Can you spot the times the SNB intervened?
The intervention area used to be around the 1.08 level until a couple of weeks ago, but with the CHF getting a strongly bid after Trump´s win, the price has slipped further down so a new intervention level is here. The problems with such slow pairs is that you must master your patience, because it takes hours for them to move 20-30 pips and days to reach to your preferred buying/selling spot.
We started to open buy forex signal here around the 1.07 level, but have been increasing it higher as the SNB takes the intervention price higher. We´re sticking to this forex strategy, hoping that the SNB will cover our backs for as long as it takes for us to make $1 million. We already had five winning signals here so we´re half way there, we need another 5,000 to reach our goal. Just hang around until then.