Economic Events
| 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: 1.1664 CHF on 07 Jun 2010.
Average: 0.9699 CHF over this period.
Lowest: 0.7224 CHF on 09 Aug 2011.
Rules:
USD/CHF: The pair tends to break to an all-time low, then range back to the previous low. The ranges are very distinct. A break to the upside will likely meet another previous low. Pair are reliable.
Characteristics
Average broker spread: 4-5 pips
Daily range average : 120-135 pips
Best time to trade: Euro Session (0700 GMT – 1700 GMT)
Factors affecting the USD/CHF rate:
- Global stability and global recovery will send USD/CHF higher
- USD/CHF rallies on geopolitical instability
Trading the USD/CHF
Trading Experience: Moderate and Advanced currency traders
Trading Style: Day trading and Swing trading
How to trade?
1) Applying Technical Analysis Analyzing Fundamental News from the CHF and US zone to make USD/CHF trading decisions.
2) Since the USD/CHF pair tends to be negatively correlated to the EUR/USD, it is always a good idea to compare both EUR/USD and USD/CHF charts in order to predict future moves, if EUR/USD breaks above an important resistance level and USD/CHF didn’t break support level yet, the USD/CHF is very likely to break below support level. This also illustrates how EUR/USD tends to lead the move ahead of USD/CHF.
Analysis and Recommendations:
The CHF fell against the USD to close the week out, it erased weekly gains. The Franc started to rise during the European session and soared after reports showed that S&P was going to downgrade Eurozone countries. Switzerland was not facing a downgrade. The pair climbed to 0.9573, and retreated afterwards, finding support at 0.9520. The Swissie should climb in early morning trading and should be strong throughout the week.
Originally posted here
