The EUR/CHF pair broke out during the session on Thursday as we continue to climb much higher. It now seems all but a done deal that we are heading to the 1.08 level, as it is the next major resistance barrier. I like buying this pair, because quite frankly the Swiss National Bank hasn't been working against the value of the Swiss franc in this market anyway. Fighting central banks isn’t something that I do very often, because quite frankly it’s a great way to lose money.
The Euro has been strengthening a bit lately, and the fact is that although I am not overly keen on the European Union in general, I do think there is a lot of value to be found there in general. The Swiss National Bank will do everything he can to discourage people from buying the currency, including negative interest rates. With this, I believe that the market eventually will reach towards the 1.08 level and that any type of pullback at this point in time is simply going to be a nice buying opportunity.
Nonfarm payroll
Today is Nonfarm Payroll Friday, but at the end of the day this pair should be relatively insulated against those moves. Any temporary volatility based upon what’s going on in the EUR/USD pair will more than likely be short-term at best, and we should continue the move higher. If we pullback for some reason, I would look at that as an excellent opportunity to go long, and I think that we may have seen the bottom in this pair several months ago.
It will be a while before we can get back to the 1.20 level, the area where the Swiss National Bank defended for so long, but I do think that it’s only a matter time before we do. With this, I am a buyer, and I believe that pullbacks will continue to attract more and more people as they see the obvious breakout. I have no designs whatsoever on selling this pair.
