EUR/CHF Technical Analysis October 12, 2011

The EUR/CHF pair rose during the session on Tuesday as traders continue to buy the Euro like they believe something has changed. Although no real announcements have been made yet, the market is acting like the situation in the EU is finally solved. The truth is that there are a lot of reasons why the Euro could sink over the next few weeks, and we would be very weary of owning it for any great length of time.

This pair could be the one exception though. The Swiss National Bank is currently putting in bids near the 1.20 level, and this will continue to keep this pair in an uptrend as it is no longer a true free market. Because of this, selling isn’t even an option at this point. The buying of this pair is the only way to go, but that also relies on the EU being a solid place to invest. At the moment, it isn’t – so there really isn’t much to do in this market presently.