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Forex: Buy EUR/CHF


Tim LuCarelli / FXAddicts.com

Market:            EUR/CHF  --  Forex

Session Date:  December 10, 2012

Buy or Sell:     Buy

Range:             Current Price


Above is a daily chart of the EUR/CHF, the same chart we looked at on Thursday December 6 th .  The only difference here is there are two more days of trading on the chart.  Since Thursday the cross has declined further closing Friday’s session at 1.2078; 12 pips below our entry on Thursday.

This coming Thursday, the 13 th of December, the Swiss National Bank (SNB) meets for the last time this year.  Many Swiss businesses as well as many government officials are screaming that the Franc is too high and that it is hurting the economy.  Additionally, the Swiss CPI came in this past week with a negative -0.3%, making the last six month’s deflation -0.7%. 

 The pressure is on the SNB to do something to curb the currency’s rise and stop deflation.  The bank essentially has two options; be the first to go to negative interest rates or create a new higher floor for the currency.  In either event it is a negative for the Franc.

Whether they do something this Thursday or wait until January, they need to act.  When they do act this market will move very quickly.  Slowly building a set of positions in this market is preferable for me as I can better manage my risk.

Setting an order to buy on the opening for Monday’s session will provide for adding to positions already in this cross.  Instead of a stop loss and profit objective I am going to set a trailing stop of 100 pips.  I know that the market is not going to go down below 1.2000 and if the SNB does make a change this week then I will get the full advantage of the market move.

Weekly Trade Wrap up

Open Orders

USD/JPY buy below 81.50 to 81.30 area with stops below 80.60 and 51 pip profit orders

AUD/USD Sell below 1.0260, stop 1.0400 and profit order of 0.9800

AUD/USD sell at 1.0512, stop trailing 100 pips (conservative)

USD/JPY buy at 81.50, stop 81.00, profit 84.00 (conservative)

Open Trades

AUD/USD sold at 1.04264 on 12-3-12, stop 1.06, profit 0.9750

USD/CHF bought at 0.92568 on 12-4-12, stop 0.9190, profit 0.9400 (aggressive)

AUD/USD sold at 1.0447, stop at 1.0610, profit at 0.9750 (aggressive)

EUR/CHF bought at 1.2090, stop 1.1990, profit 1.2400

USD/JPY bought at 82.496, stop 80.85, profit 86.00 (aggressive)

Closed Trades

USD/CHF bought at 0.92489 on 12-4-12, profit 0.9348 12-7-12 – 99.1 pips