Tuesday, March 23, 2010

EURCHF—is you is or is you ain't...

The Swiss National Bank, after a few interventions last year, has let the franc appreciate against the Euro such that EURCHF dropped to 1.4309 yesterday. SNB keeps making noise—"the means at our disposal are clear: we buy foreign currency and the scope of such measures can be huge," and "we won't allow deflation risks to reemerge," according to SNB President Philipp Hildebrand." I can't help, though, but think about the song lyrics that go, " Is you is or is you ain't my baby? The way you're actin' lately makes me doubt." Of course, the most cursory examination of the long term monthly chart of EURCHF (and GBPCHF and USDCHF) shows the price going down, down, down. So will the SNB intervene? One wonders. EURCHF hit a low of 1.4316 this morning.

Here's the monthly chart going back 30 years. Is that a trend?

© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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