EUR/CHF Forecast December 21, 2011, Technical Analysis

EUR/CHF had a flat day on Tuesday as the markets simply didn’t go anywhere. The Euro fell in general against many currencies, and the Swiss Franc simply cannot be bought with the Swiss National Bank willing to sell it off. The pair is effectively stuck between the floor imposed by the Swiss at 1.20, and the 1.25 level above that the Euro simply cannot break above. Until the EU gets its collective act together, buying this pair for any type of trade longer than a scalp is impossible. The scalping range suggests that the pair might be at the bottom, and ready to rise for a hundred pips or so. However, we wouldn’t be holding a trade in this pair for more than about 2 days.