EUR/CHF Forecast March 11, 2016, Technical Analysis

The EUR/CHF pair initially fell during the day on Thursday, dipping all the way down to the 1.09 region. We found enough support there to turn things around though that we formed a very bullish candle. This complete reversal was of course a very strong sign, but on top of that we have broken well above the 1.10 level, and that means that we have broken above a large, round, psychologically significant number. This is also a number that I have been looking at quite a bit in the recent past as it seems to be a bit of a magnet for the market.

Nonetheless, it looks as if the Euro is going to continue to strengthen in general, and the fact that the Swiss National Bank looks like they are ready to support this market the matter what, so given enough time it’s very likely that this market will grind its way to the upside. Pullbacks should offer buying opportunities, and with that we believe that this market will grind its way to at least the 1.12 level next, if not higher than that. Longer-term, it’s very likely that this pair could go much higher, especially if the Euro finds itself strengthening over the longer term.

After all, the Swiss franc is considered to be a safety currency, but at the same time we all know that the central bank has been very aggressive. On the other hand, even though the European Central Bank released an announcement that had a lot of stimulus and it during the session, it may not have been enough to scare the speculators away. On top of that, breaking above the top of the shooting star from the previous session is also a very strong sign so quite frankly there are a lot of different reasons for this market to continue to climb. On pullbacks, we are more than willing to buy this pair as it should be a grinder, but a fairly reliable one to the upside going forward. We have no interest whatsoever in selling at this point. Him