EUR/ CHF Breakout Could Bring Trading Opportunities

So far, August looks like a hot month for those concentrating on trading EUR/CHF. A price breakthrough could be just around the corner.

EUR/ CHF Price Action

The EUR/CHF pair has been moving sideways within a tight range between 0.9400 et 0.9440. This consolidation follows a sharp rally observed during the first week of August. The current price action suggests that a breakout may be imminent, creating a potentially attractive trading opportunity.

EURCHF H1 chart, August 18, 2025. Source: TenTrade.com

Trading Breakthrough Strategies 

Whether you want to trade short or long, you can use the current price action in your trading strategy. Here are a few ideas for you to consider.

Short Trade Scenario

• Entry Trigger: A 30-minute candle close below 0.9400
• Entry Level: Around 0.9390
• Target 1: 0.9360 (key support area)
• Target 2: 0.9300
• Stop Loss: Around 0.9410 (slightly above the lower range boundary)

Long Trade Scenario

• Entry Trigger: A 30-minute candle close above 0.9440
• Entry Level: Around 0.9440
• Target 1: 0.9485
• Target 2: 0.9570
• Stop Loss: Around 0.9430 (just below breakout level)

EURCHF daily chart, August 18, 2025. Source: TenTrade.com

Strategy Notes: Make Stop-Loss Levels Part of Your Strategy

This breakout strategy requires strict discipline in maintaining stop-loss levels to avoid substantial losses in case of a false breakout. The potential reward-to-risk ratio appears favorable in both bullish and bearish scenarios, making this setup worth monitoring closely. False break outs may occur, as we saw at the time of market close last Friday. A false breakout may be identified when the levels are broken but there is no liquidity (for example, when the market is about to close). Generally, avoid trading on low liquidity.

Key Takeaways

• EUR/CHF consolidated in a tight 0.9400 – 0.9440 range, after early August rally.
• Potential breakout ahead signals new EUR/CHF trading opportunities.
• EUR/CHF short setup: Break below 0.9400 targets 0.9360 and 0.9300.
• EUR/CHF long setup: Break above 0.9440 aims for 0.9485 and 0.9570.
• Breakout strategy requires strict stop-loss discipline to limit risks.
• Favourable risk-to-reward ratio makes the EUR/CHF setup attractive for traders.

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