FXWW News/Others/Trade Ideas

EUR/CHF: Headed back towards buy zone, or?

I know I was all bulled up on USD/CHF a few weeks ago but at least I can say in my defence that I sensed the error of my ways on time and managed to get out at a very healthy level.

Now that EUR/CHF is headed back towards 1.2200, should we be buying this ‘cheap’ dip or should we be avoiding? I didn’t even mention going short, as it’s hard to imagine anyone going short ahead of SNB bids but I know of at least one very experienced trader who thinks that EUR/CHF will be back at 1.10 by mid next year (on the back of a renewed EZ banking crisis).

I think its probably worthwhile buying dips towards 1.2200 in the hope that the bull trend can re-emerge, but my confidence is slowly eroding.

 

  1. Hi Sean, I’m with you on this one. Hard to imagine SNB abandoning floor anytime soon. Also thinking USDCHF is worth buying ahead of .9000~.9100 despite the recent setback.

  2. I suspect we are going to get a huge bounce in EURCHF and USDCHF around the 16th/17th. I expect EURUSD goes to around 1.3485 and USDCHF towards 90.25 before the big bounce higher

  3. Hi Mike, ECB will take over management of EZ bank stress testing early next year, this will force many EZ banks out of business, this will force big flow of real funds out of EUR and into CHF and GBP in particular.

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