The EURCHF traded at the lowest level since November 30, 2012 reaching a low of 1.2043 in trading today. Last week, the low extended to 1.20476 before bouncing back. The pair is trading at 1.2057 now.
Of course, the SNB has defined the 1.2000 level as the absolute low level (or so we expect). Of course the ECB’s guns a-blazing and strategy has put the pair under pressure, and may force the SNB to either jawbone the market and/or intervene at some point. That point has not come yet but you can be sure the SNB will not look to waste the bullets in the chamber.
EURCHF moves back down and trades at lowest level since Nov/Dec 2012
It is always tempting to just close your eyes and buy on dips, putting the stop below 1.2000 and waiting for that intervention/comment to take the price back higher. The risk is even if you do have your stop below the 1.2000 level, you likely are not alone and should the price move below that level for whatever reason, all hell can break loose. For more conservative traders who don’t want to sweat that hope, buying in the 1.2027-47 area (see chart above) seems to be a safe-r bet. By doing this trade, you can probably put it on and forget it and focus on other opportunities in the market.
