It’s not often that a trade comes along with so much upside and so little risk. Buying EUR/CHF at 1.2050 is one of those trades.
I didn’t think we would see 1.2050 in EUR/CHF this year and I’m sure it won’t last. My money says 1.25 is coming with 1.30 not far behind.
The SNB didn’t institute a peg to give it up 4 months later. These are serious people and all the credibility of the institution is on the line. With the situation slightly more stable in the eurozone at the moment, it’s all the more reason to be hold the peg.
The SNB releases balance sheet data later today and there are rumours of a hike in the peg. Don’t wait.
It’s not often that I’m extremely confident in a trade but if it goes bad, it’s only 50 pips. My stop is at 1.1999, no exceptions.