The main highlight of last week is the trade for EURUSD and capital is now up 20%. Looking at the charts, I think there is something cooking for EUR/CHF.
Remember our analysis on the EUR/CHF that its cooking to go up? Well, it did went up but it seems that many are still shorting the pair. The interesting thing here is that the Swiss government expressed their willingness to intervene should the pair reach around 1.2000. This is last year’s tipping point where exporters are expressing their grief for high exchange rates and businesses are being affected.
Now that the pair is hovering at this level ~1.2000. It might be a great idea to go long and build up the position as you go.
The price action tells the same story, “I want to go up!”.
Keep in mind that before a trend reverses, there might be a consolidation… This move up that we are anticipating, may be preceded by consolidation first before it moves up, or it might continue to go down some more before it moves up. Keep your stop losses tight and be flexible enough to know if you are wrong. I have been wrong a couple of times, so same thing goes here… Trade at your own risk.