EUR/CHF forecast for the week of September 14, 2015, Technical Analysis

The EUR/CHF pair had a strong week, as the 1.08 level below has been proven to be very supportive, as the market has been so supported by the bullish traders out there at this point in time. Also, you have to keep in mind that the Swiss National Bank has worked against the value of the Swiss franc, and especially in this particular market. With this being the case, the market should continue to work against the value of the Swiss franc, as we have certainly seen quite a bit of bullish pressure lately.

What is most interesting about this pair is that we have broken above the 1.10 level, and that of course is a very significant psychological area. Not only did we break above the 1.10 level, but we have broken above the shooting star from several weeks previous, which of course is also a very bullish sign. The fact that the candle closed at the top of the range of course suggests that the buyers are involved, and as a result we should see continuation. Will we find most interesting about this market is not only that the Swiss central bank has worked against the value of its own currency, but we now look free to do a complete “round-trip” of the massive meltdown.

Don’t forget that the 1.20 level was the currency peg that the Swiss National Bank had implemented in this market for some time. In fact, after several years of sitting above there we absolutely melted down and white doubt a lot of traders. At this point in time though, looks like we are going to go back to that area given enough time. We are buyers on dips, and of course just buyers here. As long as we can stay above the 1.08 level, we’ll see any reason why this market won’t go back to the 1.20 handle. Ultimately, we believe that the move above the top of the shooting star was monumental, and most of the market will now be aware that this pair is going much higher.