- The Euro has fallen again on Friday, as the risk appetite out there is somewhat in flux. At this point, the 0.91 level continues to be very important at this point.
EUR/CHF Approaches Key Support Amid Fragile Sentiment Conditions
The Euro has fallen pretty significantly against the Swiss Franc during trading on Friday as we are testing the 0.91 level. This pair remains noisy, and therefore its important to protect your account by trading smaller positions.
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The 0.91 level is an area that a lot of people have been watching for some time, and I think ultimately this is an area that a lot of people will be very hesitant to get involved in to the downside as it has shown itself to be rather resilient. All things being equal, if we do bounce from here, we could go as high as the 0.9160 level, which is where the 50-day EMA is. If we do break down, then the 0.90 level would be the potential target, but I think would be a major floor in the market.
Swiss National Bank Intervention Risk
Ultimately, keep in mind that the Swiss National Bank will not appreciate the Swiss Franc accelerating and appreciating too quickly, so do keep that in mind, and this is the trigger pair. If the Swiss Franc starts to fall apart, then you have a situation where we could see intervention.
I do think at this point in time, unless something really bad happens over the weekend, we probably see this pair bounce. It's probably good for a short-term trade. Ultimately, this is a market that I'm looking to buy and not sell, even though I do see where we could fall apart, but I think at the end of the day, you have to assume this is a market that will eventually try to jump a bit higher.
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