EUR/CHF Forecast for the Week of Dec. 12th, 2011, Technical Analysis

The EUR/CHF pair has been a sideways market for some time now. The Swiss National Bank initially announced a “floor” in the pair at 1.20, and this level continues to be respected by the markets. The biggest issue with this pair going forward is that nobody really wants to own the Euro as the area is going to go into recession.

The pair can’t fall much either as that floor is still intact. The SNB will certainly intervene if this pair falls too far. The continued uncertainty will continue to keep this pair very quiet over time, and the sideways action will more than likely continue for the near future. Because of this, we don’t see any long-term trades until we at least get a daily close above the 1.25 level.