EUR/CHF Technical Analysis October 14, 2011

The EUR/CHF pair rose on Thursday, but only just. The pair is being manipulated by the Swiss National Bank at this point as the self-declared “floor” at 1.20 still has traders scared of selling this pair. The pair is therefore only a one-way trade, but that would rely on the Euro being a safe currency to buy.

As things stand with the EU right now, the uncertainty makes owning the Euro especially unattractive to most traders. The recent run up in it against the USD could simply be a short-covering rally, as it hasn’t truly been tested by massive support yet. Because of all of this, we are avoiding this pair at the moment, but wouldn’t hesitate buying it if it fell closer to that 1.20 level.