By FXEmpire.com
The EUR/CHF pair fell during the session on Thursday as the bears got involved in the pair en masse. The pair actually managed to fall below the well-known “minimum acceptable exchange rate” as set by the Swiss National Bank at 1.20, and as a result this pair got a lot of attention for the session. The level held of course, but there was no massive intervention as expected. Of course, it should be stated that the central banks move on their own time. After all, they aren’t leveraged.
The level is one that the entire trading community knew about, so there is a real chance that perhaps traders simply didn’t have the courage to leave sell positions on in this market. The fall was sharp and short-lived, but it does look like we are now entering the most dangerous phase for the bears as we start to truly test the resolve of the Swiss. We still think buying is the only direction to go, and are doing so.
EUR/CHF Forecast April 6, 2012, Technical Analysis
Originally posted here
