By: DailyForex.com
The EUR/CHF pair had an interesting session on Monday as we skyrocketed higher. This pair is one that most people aren't paying attention to anymore because of the peg that the Swiss National Bank put on it at the 1.20 level. With that being the case, most traders have simply forgotten about this pair.
This pair shot through several resistance areas on Monday, but still remains below the 1.25 level. The 1.25 level is significant resistance on the longer-term charts, and it is above that level that we see this pair becoming wildly bullish all of the sudden.
A lot of this comes down to the fact that the Euro has enjoyed a sudden emergence as a favorite currency. However, this move has been so strong and so swift that I prefer to buy some type of pullback if we get it. This is been a very quiet pair over the last several months, and as a result a pullback should be relatively comfortable buying as the pair just simply doesn't fall very far.
The 1.22 Handle
Somewhere around the 1.22 handle would be good enough for me as I believe that it will be the first sign of significant support. However, that would mean wiping out the entire Monday session, which may or may not be able to happen. If not, I will simply buy whatever supportive candle that I see on the daily charts as I believe that this has potential to be a long-term trade.
On a move above the 1.25 handle however, I believe that we could see a significant move over the next several years, and this could become the same pair that it was five years ago. Five years ago, this was a simple “buy on the dips" type of pair. It was one of the best trending pairs in the Forex markets, and as a result was" easy money." Looking at this, I believe that we are starting to see a little bit of a sea change in this market and back into the norm of this pair. This could be one of the easiest and best Forex pairs again if we do finally get that breakout.