EUR/CHF Forecast December 30, 2011, Technical Analysis

EUR/CHF fell originally during the Thursday session, but found support as the Euro bounced back against most currencies. The hammer is towards the bottom of the recent consolidation area, so a bounce from here isn’t a massive surprise if it comes.

The Swiss National Bank has also put in a “floor’ in the pair at 1.20, so downside is probably limited at this point. In fact, the more likely move is that bounce mentioned above, and the hammer formed on Thursday does have one expecting that it could happen. A break above the top of the Thursday range could be seen as a buy signal for a short-term trade. The trade would have to be short-term: The Euro is simply far too toxic at the moment to own for anything more than a quick trade.