Here's an intraday chart of Euroswiss (EUR/CHF) today. Look at the sharp break to 1.20. That's the level that the Swiss National Bank vowed to defend and defend they did. Bounced right off.
There is no limit to the degree that a central bank can weaken its own currency, which means that the SNB can easily defend the 1.20 level. Expect them to be there every time the market tests that level.
For currency traders this is a gift...just buy EUR/CHF every time it gets down near 1.20. Do that all day long. It's not going below, that's the floor. You can find out how to trade EUR/CHF by taking my Apr 15-17 Forex trading course. Find out more here.
1 comment:
thank you for exposing this floor
it's how we have seen currencies rigged and propped and important
i just saved 25% on my currencies portfolio by taking this advice
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