By FX Empire.com
The EUR/CHF pair rallied on Friday as risk entered back into the market. The Non-Farm Payroll report had everyone happy, and as a result the Franc got sold off in general. The pair was dangerously close to the “minimum acceptable rate” as the Swiss National Bank refers to 1.20, and as a result we weren’t surprised to see this move. Quite frankly, it looks as if the market wanted to test the will of the SNB until the jobs report came out.
The move upwards was nice, but it is as the 1.21 area that we are seeing our first signs of resistance. IT must be noted that the pair failed at that point, although the candle was closing towards the top. The failure of the pair to break through this area won’t have us selling, but rather looking to buy at close levels to the 1.20 handle. Until then, we wait to see if the area gives way. If this pair does continue to gain, you can be assured that pullbacks will happen with frequency.
EUR/CHF Forecast February 6, 2012, Technical Analysis
Originally posted here
