EUR/CHF Technical Analysis October 11, 2011
Technical Reports
EUR/CHF fell during the Monday session as traders ran to the Franc against several other currencies. While the stock markets and commodity markets all had a “risk on” bias, this is very concerting as the Franc generally isn’t thought of as a “risk on” currency. Because of this, the pair seems to warrant keeping an eye on at the moment.
The pair can’t be shorted, as the Swiss National Bank has stated very publicly that is going to defend the 1.20 level as being too low in this pair and this should continue to keep an upward bias in the pair over the long-term. We are buyers only because of this, and welcome any dips as buying opportunities, and especially so if the Europeans can work out some kind of fix for their debt crisis.
Technically speaking, the pair seems to have significant support from 1.23 down to 1.20 or so, and should remain supportive in this general area. We would buy supportive candles in this zone, and think that it should remain to be a bit of a floor in this market. Selling isn’t agreeable as the SNB is more than likely going to work against the falling prices if they get too low.
Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.
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