With the apparent turn in the major crosses including the pound dollar and the euro dollar, the dollar swiss provides a good opportunity to trade long and also benefit from the carry trade. As most regular traders know, the pair is a snythetic pair, which correlates negatively with the Euro Dollar cross. Having seen the moves in the market recently, I opened a position yesterday at 1.2092, and am now sitting on some healthy profits at 1.2160, as the EUR/USD falls further. Indeed I am thinking of opening further positions as the majors continue to decline.
Having penetrated resistance at the 1.200 – 1.2100 level, this now seems a strong position, and I will be holding these trades for several days if not longer. Whilst the interest on the carry trade is not great, it all helps, even if only a little!!!