EUR/CHF Technical Analysis September 6, 2011

The EUR/CHF pair fell on Monday, but is doing something worth noting at this point. The pair is forming a hammer-shaped candle at the 1.10 level again. The area looks like it might be a “line in the sand” as dictated by the Swiss National Bank. While this is almost always a losing battle in the end, there could be a trading opportunity for the time being. We like buying on a break of the Monday highs and aiming for the 1.15 level. A breaking of the 1.10 level on a daily close would be extremely bearish and would present a selling signal that could get the Swiss central bankers involved again.

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