The Swiss Franc has enjoyed a very public display of love from investors who believe the currency is very stable and its central bank is governed properly. The month of June has seen the high level of the EUR/CHF reach the 1.09000 mark and then experience a rapid selloff of the EUR against the Swiss Franc.
Current support levels for the EUR/CHF appear vulnerable and speculators who believe selling of the forex pair will continue may be looking for targets short term around the 1.06200 level. The Swiss National Bank has proven to practice strong policy in the past and it is keen not to let the CHF grow too strong in value. If the EUR/CHF continues to see additional selling be generated, traders should pay close attention and make sure that if they are sellers of the pair that they have ‘take profit’ orders ready and functioning.
The Swiss Franc has added value against the Single Currency on a steady basis since the first week in June. The EUR/CHF hit important support in May and began to push up against values of 1.05000, which may have been too strong for the tastes of the Swiss National Bank. Traders of the EUR/CHF may still be inclined to follow its bearish trend which was re-established in early June and cannot be faulted. Critical short term support levels may find themselves tested today and tomorrow if speculators believe the EUR/CHF forex pair remains bearish.
The Swiss Franc has shown solid value in June and this is not going to disappear, however traders who rely heavily on technical charts may want to keep their eyes on developing economic news from Switzerland too and make sure the CHF is not becoming a target for Swiss National Bank intervention. Support levels near the 1.06200 should be the short term target for sellers of the EUR/CHF. If support for the pair continues to prove vulnerable traders may want to pursue its trend, but they should also keep in mind the SNB is watching the value of its currency with an aggressive stance and ready to act quickly if they believe the Swiss Franc is gaining too much value.
Swiss Franc Short Term Outlook:
Current Resistance: 1.06600
Current Support: 1.06200
High Target: 1.07000
Low Target: 1.05500
