The bloodshed in the Swiss Franc is likely behind us, but looking at the charts do you currently look at the CHF for trading purposes or will you wait to get more relevant data?
I think the sharp drop has messed up the technical pattern and I am waiting for more candlesticks to be formed before I analyze the CHF again.
The enemy (anybody who’s not us) may be finished but might be getting ready to have another kick at the can. Lots of other pairs, while we wait and see. I took all CHF off my platform for now in case I stumble. But for me no it’s wait and see.
These markets are typically mean reverting… When a move of that magnitude in a single direction occurs (regardless of the underlying fundamental cause), to me, I immediately think- trade the rebound.
Not saying I am in this case, nor am I advising anyone to sell the Franc…just sayin’…
Not trading those reversions, but uh… yeah. Strong itch to short CHF/JPY. Must… …not… …give… …in…
Yeah, big moves like that do look very tempting fade but when you get big time catalysts like a central bank making moves, it’s best to get out of the way. Just ask anyone who’s tried to go long the euro or yen in the past year. Or how about oil bulls who went long when they thought $70/barrel was cheap! yikes