By FX Empire.com
USD/CHF fell during the session again on Friday as the Dollar continues to get sold off. This pair will often run inverse to the EUR/USD pair, and we believe this move is more a function of that than anything involving Switzerland. The pair has broken below the 0.90 support level that we have been looking at for so long, and is even below the 200 day EMA.
However, the Swiss National Bank is working against the value of the Franc. The SNB has a “floor” in the EUR/CHF pair at 1.20, and as a result they could intervene if the pair falls too much. If they do, this pair will react in the same fashion. This keeps us a bit leery of selling this pair, although it is showing us that down is the correct direction. If you do short it – just keep an eye on the EUR/CHF, and make sure it is above the 1.20 level. If so – then you are safe.
USD/CHF Forecast February 27, 2012, Technical Analysis
Originally posted here
