- This is an interesting pair at the moment because we have seen a massive plunge as of late and the question now is whether or not support can hold somewhere near the 0.97 level.
- I anticipate seeing a lot of significant buying pressure as the market has been very bullish as of late.
- However, the last three days have been a bit brutal, so we'll have to wait and see how this plays out.
Can We Bounce from Here?
If we do bounce from here, I think that's a very strong sign, and it's actually very positive due to the fact that this could have gotten ugly rather quickly. The European Central Bank is expected to cut rates, but the interest rate differential will still favor the euro over the Swiss franc, and it's entirely possible that the Swiss National Bank decides to cut again. We are hanging around the 50 day EMA, so that brings in a certain amount of technical trading anyway.
And of course, the 0.97 level was important multiple times. We pulled back from just above the 0.99 level and I think that is your target if we can turn around and close above the 50 day EMA on the daily chart. If we break down, then the 200 day EMA is sitting near the 0.9650 level and rising. And I think that could be a bit of a floor.
Top Regulated Brokers
In general, EUR/CHF is a market that I expect choppy behavior, but I do anticipate that sooner or later, the buyers will come back in just based on getting paid interest swaps. That being said, the market got a little ahead of itself. So now I think we're in the realm of possibly trying to find a little bit of value. Once we see momentum to the upside, I'll be joining the party and buying the Euro over the franc. If this trait does set up and take off, it’s very possible that this becomes a huge trend trade.
Ready to trade our daily Forex forecast? Here’s a list of some of the best online forex trading platforms to check out