EUR/CHF Makes New Lows; SNB Lurking at 1.35
June 22, 2010 at 10:17 UTC || By Forex Playmaker
The euro continues to lose ground against the Swiss franc, as the pair reaches yet another all-time low in trading today. However, the specter of a Swiss Bank intervention looms large, with market insiders pegging the 1.35 handle as the next likely point of action.
The EUR/CHF is last trading at 1.3605, as the pair continues to trend steadily lower amid the constant threat of intervention. The SNB’s last major intervention effort came as the pair traded at the 1.40 level, resulting in a multi-day spike that saw the EUR/CHF trade as high as 1.4586.
Traders are eying the 1.35 handle as the next likely point at which the SNB will intervene. For that reason, the pair will likely trade in choppy fashion ahead of that level. As always, the best strategy, which Forex Playbook has promoted for months, is to short the EUR/CHF immediately following an SNB intervention spike. The strategy has been flawless thus far and promises further rewards to those who stick to the plan.
