FXEMPIRE
All

EUR/CHF forecast for the week of August 17, 2015, Technical Analysis

Christopher Lewis
eurchfWEEK

The EUR/CHF pair initially broke above significant resistance during the course of the week, but it turned back around to form a shooting star. Nonetheless, we believe that there is quite a bit of bullish pressure underneath and down to the Swiss National Bank will continue to work against the value of the Swiss franc, especially in this market. With that being said, we believe that volatility is probably going to be the way going forward but also recognize that a break above the top of the shooting star would be a bullish sign that would have the market go much higher. We believe ultimately that this market should then go to the 1.20 level, which is where the Swiss National Bank recently had a currency peg to the Euro.

At this point in time, it could be very volatile on the way up, but every time this market pulls back you have to think that the marketplace will favor buying this market. Ultimately, we don’t have any real interest in selling because we see the entire area between 1.08 and 1.06 as being massively supportive. With that in mind, this is essentially a “buy only” market, but we do recognize that you may want to build your position up gradually. Starting out was small positions and adding to them as we go long. There is enough volatility but quite frankly if you jump “all in” right away, we could have quite a bit of backlash that could cause quite a bit of problems. Remember, sometimes it is a necessarily the position you have but the leverage that causes so many problems.

Although the shape of the candle is somewhat negative, the truth of the matter is that there are a lot of external forces at play in this particular currency pair. Ultimately, you have to think of this more or less as an investment, as the swap is positive to the upside as well. Ultimately, if you can hang onto a bit of volatility, you should be well rewarded by being bullish of this market.

 

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US