English
Trade of the week: long EUR/CHF
We would like to go long EUR/CHF at CHF0.9215 - within major long-term support - with a view of it rising to CHF0.9340 once geopolitical tensions subside. Our stop loss is placed at CHF0.9160.
(Partial video transcript)
This week's trading opportunity
My "Trade of the week" is to go long EUR/CHF. Basically, if you look at the chart, what you can see on the chart (in the video) is that we're trading at levels where there is a lot of support. If you go back to last year, and even 2024, every single time we had a low there, we basically bounced off this sort of area. Even if we go back further in time, you can see there's a lot of very, very good support on the monthly chart.
So, from a technical perspective, I expect us to bounce back from these lows once again. And we saw already a reversal on Sunday. Now, obviously the market wasn't really open then - I mean, it's 24-hour trading on currencies, but still, from that point of view, it could bounce back. And also, EUR/CHF, at the moment: the Swiss franc is appreciating because of all these geopolitical tensions, because of what Donald Trump is doing with regards to his rhetoric regarding Canada, and the threat of tariffs and these bullying tactics, as we know in the past have led to TACO - Trump Always Chickens Out. And we might see a reversal of that happening again. So, for those reasons, I wouldn't be surprised if the euro were to appreciate again versus the Swiss franc.
So, today's "Trade of the week" is to go long the euro at this very, very important support area, which we've been in for the last two years, at around CHF0.9215 or so, with a stop-loss below these decade-old lows, around CHF0.9160, and an upside target, where recent resistance was probably around CHF0.9340.
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