By FXEmpire.com
The EUR/CHF pair fell on Tuesday as the Euro failed to impress overall. The pair has a massive “minimum acceptable exchange rate” at 1.20 as dictated by the Swiss National Bank, and as a result we cannot sell at these low levels. While it is true that the markets haven’t been able to rise with any great gusto, it should be said that the pair hasn’t managed to close below the 1.20 level yet. Because of this, we think that the market can be bought at these lows levels with an idea of trading for a short-term profit. The market continues to bounce at this level, and we see the ability to make small gains as we continue to bounce.
If we break down from here, there is a real chance that the SNB will intervene; because of this we are willing to use the mark as a backstop. The threat of intervention will help push this pair up to the roughly 1.24 level as that is the next massive resistance point. Either way, we are only buying, not selling.
EUR/CHF Forecast April 18, 2012, Technical Analysis
Originally posted here
