By FX Empire.com

With the downgrade of nine European countries on Friday, there is continued pressure on the Euro as a whole. However, this move wasn’t confirmed by S&P until late in the US session, and as a result the market’s complete reaction isn’t in the charts yet.

The Swiss National Bank has put a “floor” in this pair at the 1.20 level, and the level will without a doubt get the SNB to get involved in this pair again. The Euro is simply too toxic to own at the moment, but selling it against the Franc is a very risky proposition. The pair has been kept under by the 1.25 level, and the 1.20 level is a floor. With this in mind, we don’t’ see any long-term trades being able to be made in this pair currently. 1.25 has to be broken above on a daily close to buy for the long-term and as for selling – that would take a change of policy in Switzerland.

EUR/CHF Forecast for the Week of January 16, 2012, Technical Analysis

EUR/CHF Forecast for the Week of January 16, 2012, Technical Analysis

Originally posted here