EUR/CHF fell hard on Friday as the pressure continues against the Euro as a whole. The EU saw nine countries get downgraded in the waning hours of trading, so the reaction isn’t necessarily baked into the chart currently. With this in mind, the rumors pushed the market down most of the day.
However, the Swiss National Bank has put in a “floor” at the 1.20 level just below, so selling isn’t possible, even in this environment. The intervention that almost has to happen at that level will be brutal and fast. However, the Euro is a bit difficult to own. The bounce that comes however could be very profitable if you see that intervention. Because of this, we are looking to buy supportive candles closer to the 1.20 level for a short-term gain – maybe 100 pips. Besides that, there isn’t much to trade.
EUR/CHF Forecast January 16, 2012, Technical Analysis
Originally posted here
