The EUR/CHF pair is a market that I have not done a review on in at least a year, possibly even longer than that. This is mainly because the Swiss National Bank had put a "peg" in this pair at the 1.20 level. In fact, they had a very extraordinary monetary statement that had called the 1.20 level as the "minimum acceptable exchange rate with the Euro." We have not seen a print below that number since then.
This effectively killed the exchange rate for what seemed like an eternity. However, we now have a relatively free-flowing market, and I just happened to spot a range that could be played, especially by shorter timeframe traders.
It's kind of ironic to think about this, but unless you been trading Forex for more than two years, is very likely you've never traded this pair. Odd really, considering that it is two major currencies and the spread is without a doubt reasonable. However, I can hardly blame you for staying of the marketplace as it's been a real pain to deal with.
Range bound, and I see quite a bit of support just below
This has been a range bound market for the last couple of weeks, but more importantly I see a very significant amount of support down at the 1.24 level. I think this level should continue to hold, and if it doesn't, that in and of itself would of course be a decent sell signal also. In other words, if you decide to buy a supportive short-term candle somewhere near the 1.24 handle and it doesn't work, consider it the" paying for information" as to where the markets going next.
If we get that bounce, then I feel fairly comfortable suggesting that perhaps 2550 level will be targeted next. However, if we managed to break down below the 1.24 level, I believe that we will more than likely head towards the 1.23 level right away, and possibly as low as 1.22 level over the course of the next couple of sessions. That being said, do expect this to be a short-term traders market for some time, and look for your entries based upon the shorter timeframe charts.
