EUR/CHF: January 2016 Forecast - 31 December 2015

The EUR/CHF pair has been going sideways for some time now, and as you can see on the chart I have highlighted the 1.0750 level with not only a line, but a yellow box. I believe that there is a massive amount of support here that can be relied upon, and therefore I am buying every time we dipped down to that general area. I think that it will continue to be choppy though, so not looking for any type of major league. In fact, I am taking 50 to 75 pips of profit every time I buy this pair, and I believe it will continue to be that way.

On the other hand, we can break above the 1.10 level, at that point in time this becomes a “buy-and-hold” type of situation. I believe that will happen, but I don’t know that will happen this month. After all, there are a lot of concerns when it comes to the European Union currently, as there is quite a bit of instability.

No Selling

I do not believe that there’s any way to sell this pair right now, and I believe that pullbacks will continue to offer value that traders will continue to play off of this obvious support level. I also believe that the Swiss National Bank has been involved in this market at the 1.0750 level, as it is known that they have been buying Euros. I think this is essentially their “floor in the market”, as we had seen previously at the 1.20 handle.

I believe a break above the 1.10 level should send this market looking for the previous currency peg at the 1.20 level, as there should be essentially “empty air” between here and there. I think that we could see a massive bullish rally at that point, but I don’t know that is going to happen in January. If it does, hang on, profits will follow to the upside in a massive way.

EURCHF

 

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.