EURCHF and the ghost of the floor

[Amanhasnoname]

EURCHF is a strange pair for scalpers. Years after the Swiss National Bank dropped its floor, the pair still trades in narrow ranges, with low volatility and periods of almost no movement.

That looks attractive for tiny scalps, but the cost structure is hostile. Spreads are often wide relative to the typical range, so the pair demands a very high hit rate to break even.

Another quirk is the way it reacts to risk events. When fear rises, the franc tends to strengthen, and EURCHF can drop sharply with little warning, in jumps rather than smooth moves. Stops get skipped.

There is also the historical memory. Traders still carry the January 2015 event in their heads, which makes liquidity providers cautious, and spreads widen quickly at any sign of stress.

For a scalper, the pair works best in quiet sessions with a hard stop and a strict spread filter. It works worst when anything resembling a headline appears.

Does anyone still scalp EURCHF, and what conditions make it worth the cost?