I never did look any of the news last week until I saw it on facebook, bloomberg. The SNB did something even Central banks don’t have control at all. Capping the EURCHF at 1.200 is just never going to work at all. IT’s like defying gravity in terms of Newton Law in Physics. But this is defying PRICE , the law of Price is naturally govern by the demand and supply imbalance and equilibrium.
I doubt that SNB has the capacity to control the market forces buy buying to hold the 1.200. IN the end, it is just a matter of time to release those buying position and let it go naturally . Imagine 3 years holding. The price simply correct it self naturally to the next equilibrium to the next imbalance. !! Let digress on that and see what EURUSD is going to do this week.
I was looking into the H4 time frame and price does or have been spiraling since last year. The amount it has fallen is just great. But bare in mind, we are coming close to a demand on the larger time frame ( weekly chart soon ) so be careful when selling. Either be swing, or short term.
I set a trade to sell it at the supply into the trend. As soon as the price hit the supply, it rejects it. And only targeting this for a 1:2 RR. Yes even on H4, on all time frame, I only do 1:2 because its my favorite probability ratio. Not much of a volatility on Monday , but I presumes this will reach its target during Asian session.
Risking only 24 pip for a 48 pip reward. As usual, the trade went well.
I will post the trade chart later upon back at home.
It might be a small move but with 48 pips can equates anything from different type of lot size.
As promised, see above