Tuesday, March 17, 2009

Trading behaviour of USD/CHF

USD/CHF is often said to be a safe-haven currency pair. When unexpected geopolitical news hits, USD/CHF usually reacts the fastest and farthest. However, those markets reactions are increasingly short-lived, usually minutes to hours before the preexisting trends continue.

Switzerland conducts the 80% shares of its foreign trade with the Eurozone and remaining EU countries. The Swiss National Bank only gets involve in the forex market either Swiss franc is too strong or too weak against the Euro.

3 points to take note on trading USD/CHF:
  • Price actions tends to see one-way traffic in highly directional markets.
  • False breaks of technical levels occur frequently.
  • Spike reversal are very common.
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