The euro has risen during the session on Tuesday, as we are looking to see the carry trade over the longer-term, and you get to get paid at the end of every session.
EUR/CHF
The euro has risen a bit against the Swiss franc in fairly quiet trading on Tuesday as we continue to see a lot of carry trade action out there.
Interest rates in the European Union are higher than the Swiss franc, and as oil dropped a bit, it gave Germany, and by extension Europe, a little bit of a reprieve because, after all, we've been worried about whether or not they would have energy into the winter.
Top Regulated Brokers
Ultimately, this is a market that is going to continue to rise as long as the situation stays somewhat stable, just simply because you get paid at the end of every day, and, of course, the Swiss National Bank has zero interest whatsoever in raising rates while the European Central Bank is expected to raise 25 basis points in its interest rate during the month of September.
ECB Rate Hikes and the 0.93 Support Level
With this, I think it's probably only a matter of time before we break to a fresh new high, and every short-term pullback that I see ends up being a buying opportunity. I'm particularly interested in the 0.93 level because it's where we bounced from to begin with, and we have the 50-day EMA there.
Ultimately, I think we go much higher. This is a market that will be more of a grind, but that's not something that's a huge surprise. That's basic behavior here in this market over the longer-term.
Unless we get some type of financial crisis or something very euro-specific, I see this as a pair that has further momentum to the upside to work through, although it's not necessarily going to be a fast-moving market. It almost never is.
Want to trade our daily forex analysis and predictions? Here's a list of the best FX brokers in Switzerland to check out.