The EUR/CHF pair fell rather significantly during the course of the session on Wednesday, but as we have seen several times, the market bounced near the 1.0750 level. After all, this is a market that has seen a bit of a floor in this region as the consolidation continues to be very reliable. I believe that this will continue to be the way going forward, and also recognize that perhaps the Swiss National Bank is behind part of the resiliency that we have seen. After all, the Euro has been struggling for quite some time, but remains fairly stable here.
The Swiss National Bank has recently revealed that they have been buying Euros, and as a result we should continue to see bullish pressure in this market. I believe that this market will eventually break out to the upside so I have no interest in selling, and unless of course the Swiss completely shocked the markets yet again, I don’t see this market breaking down.
Supportive Looking Candle
The candle that form for the day on Wednesday was somewhat like a hammer, and as a result I think this simply shows that we are ready to go higher yet again. The question then will be whether or not we can get above the 1.09 level. Ultimately, I need to see this market go above the 1.10 level in order to be more comfortable with a longer-term “buy-and-hold” type of trade, but in the meantime I don’t see any reason why there can’t be money made on short-term scalping positive moves.
I think that this market continues to offer 50 and 100 pip moves time and time again, and as a result it is going to be an excellent market for those who can place trades over and over, and of course monitor the position carefully. Longer-term trades will have to wait until we get more clarity.
