The Euro rallied during the trading session on Monday to kick off the week on the right foot.
EUR/CHF
The Euro rallied during the trading session on Monday against the Swiss Franc yet again. The market initially gapped higher, fell to test that gap, turned around to show signs of life, and has since been very bullish.
Ultimately, this is a market that will continue to be noisy in general, and that does make a certain amount of sense considering that the interest rate differential continues to favor Europe and the signs are there that perhaps the European economy isn't as bad as once feared. If that's going to be the case, then there's the possibility of tighter monetary policy down the road, and that fares well for the Euro itself.
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This is a market that I think, given enough time, probably will continue to grind its way higher. The 0.9350 level is an area that has been very important recently, and I think continues to be something that you should pay attention to in general. With this being the case, it's very likely that over the long haul, this is a market that could find its way much higher, assuming that there isn't a run to safety, which, of course, the Swiss Franc is one of the bigger destinations for that type of setup.
Golden Cross Signals Long-Term Bullish Trend
Overall, this is a market that remains very noisy, but very positive. I like buying dips here; I have no interest whatsoever in shorting. I believe that the 0.93 level will remain an area of interest, and then below there, the 0.9280 level remains an area of interest as well.
Over the longer term, I anticipate that this is a market that will continue to be noisy, but bullish. It is worth noting that the 50-day EMA has recently crossed above the 200-day EMA, which, of course, is a very bullish sign known as the Golden Cross.
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