EUR/CHF Technical Analysis for the Week of August 15, 2011

The EUR/CHF pair fell hard in the early days of the week, only to bounce back and form a hammer that is nice and extended. This is a classic buy signal when the highs get broken, and although we are aware of this, we don’t want to buy still. We see the 1.15 area above as massive resistance, and think that any bounce will get stopped cold at that point. Also, there is a Swiss National Bank meeting this week, as well as one for the Federal Reserve. This next week could be rough sailing. By Friday, we should have a much more clear picture.

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