The euro continues to see upward pressure against the Swiss franc in general, but we continue to see a lot of volatility in both directions. There are a couple of indicators just below that could offer support, also.
EUR/CHF
The euro continues to be very noisy against the Swiss franc as we continue to see a lot of people out there look at this through the prism of a market that continues to see the 200-day EMA as important. The 200-day EMA is an indicator that will determine the trend for a lot of traders, but even below that, we have a lot of support in the form of the 50-day EMA and the 0.92 level.
Top Regulated Brokers
When I look at this pair, the interest rate differential, of course, is a major factor, and you should keep in mind that the overall attitude of this market can be driven by risk appetite more often than not. The traders out there will look at this through the prism of the euro, which is considered to be a little bit riskier than the Swiss franc, as the Swiss franc is considered to be a safe currency in general. Money flies out of Switzerland and back into the European Union when traders are looking to put some risk on.
Building Upward Pressure Toward Key Resistance
And when I look at this chart, it does look like we have been building a bit of pressure trying to get to the 0.93 level. The 0.93 level is an area that I think is going to be important, as it is a gap lower from the beginning of January, and if we can get beyond that gap, then I think it frees the euro to go much higher. You do get paid to hang on to this pair, so therefore I like the idea of buying on dips, and I have no interest whatsoever.
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