Economic Event
| Jan 16 | ||||||
| 08:15 | SwitzerlandProducer and Import Prices (MoM) (Dec) | -0.6% | -0.8% | 1 | ||
| 08:15 | SwitzerlandProducer and Import Prices (YoY) (Dec) | -2.4% | 1 | |||
| Jan 18 | ||||||
| 10:00 | SwitzerlandZEW Survey – Expectations (Jan) | -72 | 2 | |||
Historical
Highest: 1.5193 CHF on 10 Oct 2009.
Average: 1.3271 CHF over this period.
Lowest: 1.026 CHF on 10 Aug 2011.
Support: 1.216
Resistance: 1.2085
Trend: Flat/Sideways
Rules:
Characteristics
Average broker spread: 3-5 pips
Daily range average : 35-48 pips
What moves:
- The interest rate differential between the European Bank(ECB) and the Swiss National Bank(SNB)
- Swiss and Euro zone fundamentals
Trading the EUR/CHF
Applying Technical Analysis and Analyzing Fundamental News from the Euro and Swiss zone. EUR/CHF is frequently chosen for carry trades which involves going long a high-yielding currency (EURO – 3.50%) against a low-yielding one(CHF – 1.50%). Traders earn daily interest fees when holding this pair long (rollover fees).
Analysis and Recommendations:
The CHF also dropped considerably against the Pound. The GBP/CHF recovered from 1-month lows, at 1.4440 and jumped to 1.4605.
Despite falling versus the Pound and the US Dollar, the Swissy remains strong against the Euro. The EUR/CHF recently reached the lowest level since September 2011, below 1.2100.
With the Euro continuing its decline, this is a strong buy recommendation. The CHF should weather the EU crisis and the downgrade and should continue strong throughout the year.
Originally posted here
