EUR/CHF Resurrection: Advantages Of Entering Before Breakout

I was going to write an analysis article on the EUR/CHF but ended up writing a little about reasons why you should look to enter a trade BEFORE a breakout takes place, rather than waiting for confirmation first. So, this can be a good educational article as well as providing you with some analysis on the EUR/CHF. My hope is that you will learn a thing or two from reading this piece.

Waiting to pull the trigger is important under certain conditions, especially when you are not so sure about the directional bias. But if you have a strong conviction about something then why wait? Indeed, you can double up when you are proven right. More on this later, but let’s start by doing some analysis on the EUR/CHF first.

EUR/CHF rises from the ashes

If you have been involved in the financial markets longer than a few years, you will know all about the EUR/CHF. Unfortunately, this once-famous currency pair has become the forgotten one after spending the best part of the past year in a tight consolidation, and not moving too much before as well.

Well, things have changed dramatically for the EUR/CHF this week. The forgotten currency pair has risen from the ashes and surged higher over the past couple of days:

(Click on image to enlarge)

EUR/CHF daily

The good news for traders is that now you have one more major currency pair to add to your watch list. The even greater news is that the very long period of consolidation and now the bullish breakout means it is highly likely to continue higher for weeks and possibly months to come. Thus, it should provide you with plenty of trading opportunities. So make sure to buy any future dips back to support (obviously without forgetting your stop loss as well as risk management and money strategies).

I actually wrote on the EUR/CHF on 9th Feb before the breakout happened, in this article here. This was the monthly chart I shared then:

(Click on image to enlarge)

EUR/CHF monthly before

Source: TradingCandles.com and TradingView.com

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