Informative Analysis of the USD/CHF Currency Pair

By | November 27, 2013

Wednesday, November 27th, 2013 by Tim Lanoue 

Traditionally Forex trading was the way to make money online by investing but that has changed over the past 7 years since the release of a new style of trading known as binary options.  The binary options industry is booming and is showing no signs of slowing down allowing investors globally to reap the benefits and enjoy the financial freedom they have craved for so long.  The purpose of today’s article is to provide binary options traders an exclusive insight on the USD/CHF currency asset.

Swiss Franc Monetary Analysis

For those of you who are new to binary options or are unsure about what a currency pair is they simply are an asset that compares the price of one currency to another, so for example here we are comparing the price of the United States dollar to the price of the Swiss Franc.  Switzerland is commonly seen as a stable country that is decently wealthy, stable and safe.  One of the major reasons of their wealth would be due to the Swiss banking rules that are traditionally known to be strict but now have eased over the last couple decades.  A large amount of the wealth accumulated by Switzerland has been a product of investment management, insurance collections and large number of private banking.  There are a few ways to trade the USD/CHF currency pair and they are fundamentally, technically, or correlational.  When using fundamental analysis to trade the USD/CHF we need access to an online financial portal like Google Finance.  In addition, we are watching the price of the USD/CHF pair and if we notice a suitable dip in the price of the asset then that may be an indicator that the asset is progressing in a long downtrend that can be traded.

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Swiss Franc Trading Analysis 

There are a few factors that can influence the price of the USD/CHF pair that should be mentioned.  The first would be if any national banking company suddenly lost liquidation or was targeted negatively by the media then the USD/CHF price would surely drop.  In addition, it is important to include that this binary options currency asset is most often traded during U.S. market hours making it perfect for day traders in the United States or neighboring countries.  When using technical analysis the practice of Price Action could be implemented or you could use a very basic form of analysis known as correlation analysis.  Correlation analysis is a type of analysis that involves the correlation of price between two different currency pairs.  More often than not when you are correlating a related asset the direction of a currency pair will correlate with the other.  An example of this would be if we took the USD/CHF currency pair and compared it to the USD/SGD currency pair.  In the pictures below you see visually see how this would appear.

Although the binary options industry may be booming it may be difficult to find the right asset for you to trade so hopefully this writing gave you a unique insight and information on how to trade the USD/CHF currency pair more effectively.  The future for the Swiss Franc looks promising and will continue to grow throughout the ages allowing this asset to be an even better choice to trade.  There are a few forms of analysis that you can use when preparing to trade this asset that can be easily executed and applied to your trading portfolio.

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