forex-scalping.com

USDCHF often gets ignored by scalpers, but I've started using it alongside EURUSD and it has its uses.

The two pairs are strongly negatively correlated most of the time, because EUR and CHF move together against the dollar. But there are differences:

• Range: USDCHF usually has a smaller daily range than EURUSD.
• Spread: a bit wider on most brokers, so the cost relative to range is higher.
• Behaviour: CHF reacts to risk-off moves as a safe haven, so it can diverge from EUR during market stress.
• SNB risk: rare but serious surprises. 2015 is still a reminder.

How I use it:

1. As confirmation. If EURUSD breaks a level and USDCHF does the mirror move, I trust the break more.
2. As a warning. If EURUSD rises but USDCHF doesn't fall, it's often EUR-specific news, not a dollar move.
3. Rarely as a trade itself, only on clean dollar-driven days.

My stats on USDCHF trades alone are mediocre. As a filter for EURUSD trades, it helped cut some false breaks.

Does anyone trade USDCHF as a main pair? How do you handle the smaller range?