EUR/CHF Forecast February 22, 2012, Technical Analysis

EUR/CHF rose slightly on Tuesday as the markets reacted to the Greek bailout in a generally Euro positive tone. The pair of course has a floor at the 1.20 level imposed by the Swiss National Bank, so selling really isn’t’ going to be an option for most traders at this point anyway. The ability for the central bank to buy “unlimited Euros” as they stated should continue to keep this pair post-1.20 for the foreseeable future.

With this in mind, we are constantly looking for buying opportunities going forward as the SNB being a backstop is one of the strongest allies you can have. Although the Japanese have failed, the Franc is a much smaller market, and the Swiss actually have a real chance of winning this fight. (It should be noted that the Japanese have won theirs in the past – but it takes a lot of strength to move the Yen markets for good.)

With this in mind, we buy dips for short-term gains.

EUR/CHF Forecast February 22, 2012, Technical Analysis
EUR/CHF Forecast February 22, 2012, Technical Analysis

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