EUR CHF Trading

The shock of the Swiss franc Forex conspiracy is past and EUR CHF trading has returned to a more normal mode.

It was getting too expensive to prop up the Euro and keep pushing down the value of the franc. And it was going to get more difficult when the European Union starts printing money for a Quantitative Easing Stimulus program much like the US Federal Reserve used to rescue the US economy. In this sense it was not a Swiss franc Forex conspiracy so much as necessary shift in Swiss monetary policy.

Now that the franc has found a more comfortable level against the Euro where are there profits to be made in EUR CHF trading?

Trends and Limits

FXStreet expects EUR/CHF to re-test at 1.0524.

Karen Jones, Head of Technical Analysis at Commerzbank, expects EUR/CHF recovery to lead to a retest of 1.0524 levels.

EUR/CHF is attempting to recover ahead of its short term uptrend and should retest the 1.0524 50% retracement and 30th April high.”

“Dips lower should find initial support 1.0384, the 14th May low and hold the 1.0363 uptrend for an upside bias to be maintained.”

“A close above 1.0524 will be needed to see a further upside target of 1.0591 engage, this is the 61.8% retracement of the move down from February.”

Above 1.0591 will introduce scope to 1.0688, which is regarded as the last defense for the 1.0811 high.” This is the usual language of EUR CHF trading as traders use fundamental and technical analysis to track the market in search of profits.

The Past Repeats Itself

The basis of technical analysis of Forex currencies is that the past repeats itself.

Technical analysis of Forex currencies has to do with using market price patterns to predict the next market move. Traders use tools such as Japanese Candlesticks in order to use market history to predict coming market events. An old saying is that the past predicts the future and this is the foundation of the technical analysis of Forex currencies.

The point in profiting from changes in foreign currency exchange rates is not to force the issue. Unless you are a central bank official, president of a country, or chairman of the Federal Reserve, there is little that you can personally do to drive currency rates. What you can do is observe. When rates are going up, or down, and market fundamentals indicate that the change will continue you can trend trade.

Today in EUR CHF trading traders watch price patterns to anticipate the next move of the market. Whether they use brand new statistically based technical tools or time honored and easy to read candlestick patterns the goal is the same.

When you see a unique market signal and all of the specific criteria for its interpretation are present, you can trade based on this signal and expect to make money. As always do your own fundamental and technical analysis and when things are not clear do not guess but rather, sit on your hands to avoid making a dumb trade! Wait for the signal, evaluate and confirm the signal, and then make money in EUR CHF trading.