Although the EUR CHF pair is not one of the most traded currency pairs in forex, it remains a very popular trading instrument, especially with investors interested in the short term. In this article, we will therefore review the EUR/CHF pair and its price. We will see how to trade Euro France Switzerland . via the best forex brokers in France.
Step 1: Registration with eToro
The first step you will need to take will be to complete the basic registration form . In particular, you will be asked to enter your surname, first name, telephone number and email address. You will also need to choose a username and password. This data will be used later for the connection to the eToro platform.
Step 2: Verify your Account
For this 2nd step, you will have to verify your forex account. To do this, you will need to start by clicking on the “complete profile” button. You will first be asked for your physical address. Note that you will then have to provide proof of address which must include this address. The 2nd step of account verification will concern the “know your customer” process.
This questionnaire contains a whole series of questions about your financial knowledge, your income and financial situation, and your experience of the markets. It is important to note that this is a regulatory obligation for all brokers regulated in the European Union. This is to ensure that their clients fully understand the risks of the financial products they are trading, and in particular the EUR CHF pair.
Step 3: Fund your Forex Account
Once you have validated and verified your account, you will be able to deposit money into it. So you can start real EUR/CHF trading. Start this process by clicking on the “deposit money” button at the top left of the eToro interface .
You will then be asked to indicate the amount to deposit, also choosing the currency of denomination. You will also have to fill in the information relating to the means of payment used, to validate the transaction.
Step 4: Display EUR CHF Price Chart
To discover all 52 currency pairs available on the eToro trading interface, you must first click on “markets” in the left column. On the next screen, you will then need to click on “Forex” in the menu at the top of the screen. The list of 52 currency pairs that you can trade with the eToro broker will then be displayed.
Note that this list has interesting details such as a mini chart or market sentiment data for each currency pair. Thus, it is possible to identify at a glance opportunities to study further.
But it is also possible to find the EUR/CHF pair more directly. To do this, you just need to type its name in the search engine at the top of the trading platform.
You will then need to click on the “invest” button which will appear opposite the name of the EUR/CHF pair. This will allow you to open the order window that we will describe in the next step.
EUR CHF Trading Explained
In this section, we will first explain what the EUR CHF pair is, followed by explaining what EUR CHF trading is all about. We will also list everything you will need to start trading EUR CHF.
What is the EUR CHF?
Although not a major, this pair is relatively popular , especially among swing traders. It is often described as a trending pair with long moves in one direction or another, and less volatility without compromising liquidity.
Due to the similar characteristics of the pairs, it is strongly correlated in its movements with the EURCHF, which is more volatile in the short term.
Economically, the Euro Zone eclipses Switzerland, with a GDP of $19.7T recorded in 2017, compared to only $679B for the same period in the Alpine country. However, the larger economy is often seen as fractured and prone to risk, while Switzerland enjoys a solid reputation for stability and fiscal responsibility . This is why Europeans often turn to Switzerland to store their heritage.
While the Eurozone is a broad-based economy, Switzerland is heavily dependent on its financial industry and exports (with tourism coming next). This is the similarity between trading USDCHF and EURCHF.
What is EUR CHF Trading?
Concretely, EUR CHF trading consists in trying to profit from the variations of the euro against the Swiss franc on the foreign exchange market . Most of the time, EUR CHF traders base their trading decisions on the charts. If they think the pair will go up, they should buy. If they are right, they make a profit. If loss. Conversely, if a trader thinks the EUR CHF pair will fall, he should sell it. If it does fall, he makes a profit. If on the contrary it progresses, he will lose money.
It is possible to decide whether to buy or sell EUR CHF with various methods. The 2 main ones are technical analysis and fundamental analysis, disciplines that we will cover in more detail later in this guide.
EUR CHF traders can on the other hand be very active, taking many trades every day, or on the contrary make fewer trades, but on a longer term. This all depends on the chosen EUR CHF trading style, a topic we will cover in the next section.
How to Do a Euro – Swiss Franc Analysis
There are 2 main methods for analyzing forex currency pairs and more specifically the EUR CHF pair. These are technical analysis and fundamental analysis. In this section, we will therefore provide you with more details on these 2 analysis methods. We show you the steps to follow to acquire the knowledge you need.
EUR CHF Technical Analysis
The basic principle of technical analysis is to study the past to predict the future. Specifically, technical analysis looks at past price action via charts to arrive at trading decisions. Concretely, the EUR/CHF technical analysis aims to answer 3 essential questions.
- The first concerns the trend. Is it bullish or is it bearish?
- The second question concerns timing. When exactly should you position yourself?
- Finally, the third question concerns exits from positions. When closed?
In the following sections, we will provide you with the first indications that will allow you to answer these questions.
Analyze the EUR/CHF Trend
Analysis : Uptren what is called chart analysis. This is an essentially visual discipline which consists of identifying important levels and particular configurations on the charts.
Among the technical methods which make it possible to evaluate the tendency, one can in particular point out tools such as the supports, the resistances, the lines of tendency, the channels of tendency, or the graphic triangles.
first need to open an account a few minutes. You will then have to deposit the money you want to invest in the EUR CHF pair. Note that it is the online brokers who will provide you with the trading platforms on which you will carry out your analyzes and through which you will place your orders on the EUR CHF pair.
To operate this trading platform, you will also need a computer. If at the same time. Finally, you will of course need to ensure that you have a fast and reliable internet connection in order to avoid errors in the transmission of orders to the market.
Which Strategies for Trading?
Depending on the time horizon over which one invests in the EUR CHF pair, there are different trading styles. We will therefore detail the 3 main EUR CHF trading styles in the section below.
Scalping EUR CHF
scalping is a very active and very short term trading style. Indeed, the principle of EUR CHF scalping is to carry out a large number of operations each day, each time aiming for minimal gains. Thus the accumulation of small gains during the day gives rise at the end of the trading session to very interesting profits. It is therefore not uncommon for EUR CHF scalpers to carry out several dozen transactions per day.
Because of this, EUR CHF scalpers use very short-term charts . Basically one minute and 5 minute charts. It should be noted not matter. Indeed, EUR CHF scalpers are mainly looking to take advantage of micro-movements that have little to do with the general direction of the pair’s movement.
EUR CHF scalping also requires making decisions very quickly. This limits the possibilities of analysis and use of indicators. Thus, to reach their trading decisions, EUR CHF scalpers primarily use techniques that are simple and quick to apply. It is beginners.
In addition, you must be aware of the fact that this is a trading style that requires a very high availability in terms of time. Indeed, scalping requires constantly staying in front of your trading platform during the trading day.
- Typical target gain per trade: 5 to 10 pips
- Graphics used: 1 minute / 5 minutes
- Use of simple analysis techniques, such as support, resistance, trend lines and channels
- From 10 to 100 EUR CHF trades per day
- Requires high availability
day trading is also a short-term trading style, but less active than scalping. However, day traders still generally open several trades per day. With day trading, the goal is to open positions early in the day and have them all closed by the end of the trading session.
To make their trading decisions, EUR CHF day traders rely on 15-minute and 1-hour charts generally. On such time scales, the general trend can therefore be taken into account. Thus, the first thing a EUR CHF day-trader does at the start of the day will be to analyze the trend. Then it will look for an opportunity to move in the direction of the trend.
Unlike scalping, day trading allows time for proper analysis. It will therefore be possible when making a decision to involve elements of graphic analysis, as well as forex indicators.
Finally, it should be noted that EUR CHF Day trading implies average availability. It is indeed possible to analyze the market and plan its positions in the morning, to then go about its business, leaving stops and limits to act automatically.
EUR CHF trading is therefore an activity that can prove to be interesting for many investors. However, thisand suited.
If you too want to start profiting from trading, you will need to choose a forex broker. We’ve covered five oWe therefore invite you to inquire about this leading intermediary now.