I’ve had a small USD/CHF long position for the last week or so which I added to earlier this morning, leaving me with a reasonably sized trade with an average entry level just above .9300. Technical support comes in near .9230 and if this level is tested and holds, then I may look to increase the position again.
My reasoning has been strengthened by the break lower in Gold, as there has been a very strong correlation in recent years between the moves higher in both Gold and the Swiss Franc. By my reckoning, EUR/USD can move back towards 1.20, EUR/CHF could see 1.30 again, leaving USD/CHF close to 1.10 again. You gotta have a plan!
As we know, in FX trading the most important ingredient is timing, closely followed by risk management, and a slice of luck doesn’t go astray either! Fingers crossed that I get all 3 right. (And if you can’t afford a trade, don’t take it on!)