The EUR/CHF pair initially fell during the course of the session, but found enough support below the 1.08 level to turn things back around and form a bit of a positive candle. That being the case, the market looks as if it is ready to go higher, and the fact that we broke above the top of the hammer by the end of the session suggests that the Euro will continue to strengthen against the Swiss franc. The 1.08 level has been massively supportive, and I suspect that perhaps the Swiss National Bank has been involved in this market recently. After all, it has been shown through their financial records that they have been involved in the Forex markets yet again, and this of course would be the first place I would expect them to be getting into.
Going Higher
I believe that this market is going higher, and there is no way that I have any selling opportunities coming anytime soon. After all, I think there is massive amounts of support not only the 1.08 level, but extending all the way down to the 1.07 level as you can see based upon all of the wicks that are on the bottom of the recent candles. On top of that, we closed the very top of the range for the session, so that normally means that there is a bit of follow-through coming. After all, the last several sessions have seen this market pullback from the absolute top of the range, so now that we are closing towards the top of that, it shows that we are finally starting to break through some resistance.
The next target should be the 1.09 level, which of course has been resistive in the past. However, I believe that we will break above over there, and then reach towards the 1.10 level. Ultimately, if we can break above there, the market should be heading towards the 1.20 level on the longer-term move. I have no interest in selling again, as I think this will be one of the better trades into the future.
