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15/23
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I personally started trading EURCHF pair after Swiss National Bank intervention on September, 6 2011. At that time I was new forex trader and for me it was epic move. The exchange rate of EURCHF skyrocketed from 1.1018 to 1.2187 in just 3 hours, which is 1169 pips move as you can see on figure 1. Many traders lost or made really lot money thanks to this event.
Figure 1. EUR/CHF Hourly chart. Swiss National Bank Intervention in 2011


Yesterday it was just three years from SNB annoucing 1.2000 floor and market wasn´t able to break this floor as you can see on figure 2. The main question for me right now is, will SNB protect 1.2000 level this time? Will be or will be not market able to break this level in medium term perspective? What are the risks in current market situation?
Figure 2. EUR/CHF Weekly chart. Situation after SNB intervention.


Technical analysis of EUR/CHF pair
Current market exchange rate is 1.2063. The most important level to watch is 1.2000, which should be protected by Swiss National Bank, many retail traders and big players, so the best level, where to put stop loss to protect capital is under level 1.2000. For my trading style is ideal level 1.1970, which is 30 …
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Airmike avatar
Airmike 10 Sep.

I vote for EURCHF long. :)

Daytrader21 avatar

Well, just after I've posted my comment yesterday SNB spokesman Meier give an interview to WSJ saying SNB is open for negative rate, which is an old news as every time EUR/CHF come near the PEG they pull out of a hat this rhetoric:)). I hope you took some profits as it will come back again:))

PTtrader avatar
PTtrader 11 Sep.

My target is 1.2250 for first medium term position :) I dont think that they will apply it in medium term, they thought about it even two years ago.

peachynicnic avatar

nice, thanks

VictoriaVika avatar

Thanks for your article, there is many useful information, really good strategy and detail explanation. Victoria

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8/30
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After nearly six months of sleeping, one of the most volatile currency pairs before the introduction of the floor on 1.20, woke up. The reason for waking was restore the trust that the EU will find a solution to its debt crisis and the diminishing pressure on the SNB to buy euros for Swiss francs. Will this adventure of eurchf last long or we'll come back to 1.2006-1.2011 range? Thanks to the recovery of the EURUSD? The debt crisis in Europe that has lasted for 3 years strongly affected by the devaluation of euro, however the actions taken by the EU member states as well as the establishment of the ESM and opportunities through which these funds will be used affected the recovery of the euro against all currencies, among these currencies are found and CHF. Chart 1. EURCHF dailyRecovery of euro against the dollar in particular contributed to a QE3 which the Fed has done even more pressure on the dollar. Between EUR / USD and EUR / CHF we can find correlation (see point 1,2 and 3 on chart 1 and 2), so when the EUR / USD at a level above 1.3, then the pressure on the floor 1.20 was lower and the EUR / CHF moved in the range 1.2030-1.2150, whereas when the EUR / USD fell below 1.30 on…
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amerfx86 avatar
amerfx86 25 Nov.

CHF which leave the Swiss are used in the financial systems of other countries. Because of the financial and debt crisis that started in 2007, CHF is tempting currency, but when the market is flooded with CHF, market will react as the SNB wants, selling CHF and pressure on the floor would be a none, that would be the moment when SNB will remove floor.

Berkeley avatar
Berkeley 27 Nov.

Well done, your strategy is very interesting. All the best for you!

alifari avatar
alifari 29 Nov.

nice article

mohamed1 avatar
mohamed1 29 Nov.

Nice article

mucha89 avatar
mucha89 19 Sep.

nice article. good luck!

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17/53
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EUR/CHF started to be very popular pair for forex traders after SNB (Swiss National Bank) intervention in September 2011, when EUR/CHF fly up from 1.1020 to 1.2160. Many traders allround the world make lot of money and many traders loose their money at that move. One of my friend, who started with forex scalping strategy, trade that day at EUR/CHF, he was such unlucky, that he had opened 10 standard lots short position at that time. When the market fly up, he couldn't close his position thanks to spike and end with 150 pips loss, which was 50% loss for him. (15 000$) Nowdays EUR/CHF is traded at levels around 1.2050, which is very good level for buying this pair, if you believe in 1.20 peg. I heard that in the area around 1.1980 - 1.2000 are SL and pending orders in size bigger than 20 bilions USD at all, which is around 200 000 standard lots. I would like to share with you several my ideas and analysis, why i have decided to go long. This doesn't mean that you have to too, its up to you.Reasons why to go long(buy) EUR/CHF:1) 1.2000 peg, protected by SNBOne of the biggest reason is, that this level should protect Swiss National Bank, which can without any problem buy aroun…
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jlongo avatar
jlongo 7 Mar.

Good analyses, like to read it, precise and well explained. Keep good work. Good luck and trade well.

PTtrader avatar
PTtrader 7 Mar.

Thank you jlongo.

marius24 avatar
marius24 22 Mar.

i think this paris will be long for now on because of easing pressure in financial market..good luck bro

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4/58
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In the past I've wrote an
article about EURCHF setup. We all know that currently this pair is
in a strong downtrend. But we also know that SNB set a floor –
1.2000 - for this pair. So we still have
great opportunities to trade. Currently I am building longs of this
pair. I expect that just after these problems and uncertainties with
Euro end, pair will move up. Also intervention by SNB is probable
too. Rumours about new – higher floor would fast lift the pair too. But also while trading this pair, risk
has to be calculated and stops have
to be used. We cannot be 100% sure if SNB will
defend floor. They can change their minds. In this case we would get
crash of this pair. So all positions should be reversed in this case.
Anyway I think that this scenario is least probable, because now,
when they already set the floor, changing minds would be very
damaging to Frank rate.In this
article I will shortly show the levels and what I am expecting.
In a
chart below is a daily chart of bigger picture. On a regular pair we
could expect a reversal, so with 1.2000 floor odds for a reversal are
even higher.
Below is
a 1 hour chart with uptrend line. There were few nice opportunities
to long from …
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jurga1s avatar
jurga1s 18 Feb.

Not bad. Now the pair is at 1.2087, that is +23 pips from 1.2064. And that level really worked! Just in this case fundamentals means a lot too.

aurelijus avatar
aurelijus 18 Feb.

Don't know, this looks dangerous.

ritesh avatar
ritesh 26 Feb.

perfect analysis.

adask avatar
adask 29 Feb.

Currently the pair is stuck at 1.2050. If we would look at bid line we'll see how 1.2050 is magic. We have to keep in mind this. I think SNB will not allow lower for now. And currently I see some funds forecasting 1.2700, well this is far future.

Bluedragon avatar
Bluedragon 29 Feb.

good luck;) +1

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28/65
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EURCHF is one of the unique pairs. It's action is always interesting and regular analysis not always works on this pair. It's because Switzerland doesn't want strong Frank. Why is that? Because they export a lot and weak currency compared to others, means that products are cheaper. And we all like to buy cheaper products. So from time to time SNB (Swiss National Bank) intervenes (sells a lot of Franks, so weakens it). This is the reason why it's hard to trade on regular technical analysis. Also sometimes it's enough for rumors about intervention to come out and everybody starts to sell CHF.  Obvious and recent intervention happened at 2011 Septemper 6th. That day EURCHF pair moved ~1000 pips. Yes yes - 1000 pips in one direction and in several hours. 1 hour chart below (links to the full-sized images are listed in the end of this article).There's also a very unique thing about this pair - SNB said that bottom for this pair will be 1.2000 and they will do everything to defend this level. I do not remember any currency pair to have a bottom. It's a very big advantage, we should use in our favor. Besides, rumors are that they will set a new bottom - 1.3000. But this is not confirmed, …
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LinnuxFX avatar
LinnuxFX 24 Nov.

Nice Trading approach, good luck for this article, and for the trade if you enter on it...

jonas avatar
jonas 24 Nov.

Good article. But now euro/frank looks in sooo downtrend! Do you think SNB will intervene again? I would be afraid to long now.

adask avatar
adask 25 Nov.

Thanks LinnuxFX. Jonas - I know that longing eurchf doesn't look good now. But I think we'll get a good trade soon. I will long at 1.2230, 1.2130 and if needed at 1.2030.

adask avatar
adask 25 Nov.

Besides there's eurchf chart - http://twitpic.com/7jba74/full
I think a nice entry level forming. But we need euro strength.

ksalam avatar
ksalam 26 Nov.

Interesting and useful post. thanks.Good luck +1
Visit my article & give me your feedback.

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