Two central bank (ECB, SNB) rate decisions and forward views are going to be published on 12th December. Regardless of the forward statements tomorrow I think Euro economy is weak and there are political uncertainties in France and Germany and the Swiss economy being dependent on Euro, we have seen weakness in the Swiss economy (confirmed by SNB as well).
So as and when I see pullbacks on EURUSD and I would recommend short trades on the pair. I believe the weakness and uncertainties in the Euro economy will persist for next 2-3 months (even longer but don’t want to think too far ahead). Similar long opportunities lie with USDCHF although I have not traded it yet.
I think in both risk off and risk on scenarios (USD positive news) there are more chances that EURUSD will go down and hence a safer currency pair to trade. The USDCHF will go down in risk off scenarios, so there is a bit of risk there in trading USDCHF.
EURUSD price above 1.0550 is attractive for shorting in the current economic conditions.
Swing traders can benefit from the swaps earned from the above trades and keep the trades open for days if the trades go against them. Use good risk management to manage your trades.
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