By FX Empire.com
EUR/CHF is falling over time, but Thursday saw a little bit of a reprieve. However, the gains were mostly given back. The Swiss National Bank is currently ready to defend the 1.20 level, and most certainly act if the pair falls below it. Because of this, the pair can only be bought if you are to trade it.
The candles sticks actually look quite bearish, but the backstop is a large one considering the market is being held up by a central bank that has said several times it would be willing to buy “unlimited Euros” in order to keep the rate up. A long position can be taken as long as you are patient. One of two things will happen: Either the pair falls below and starts intervention, or the pair grinds higher as traders aren’t interested in testing the central bank. Only fools and reckless traders are shorting now.
EUR/CHF Forecast February 3, 2012, Technical Analysis
Originally posted here
