The EUR/CHF pair fell again during the session on Monday, but as you can see we continue to find support somewhere near the 1.2135 area. It is perhaps because the Swiss National Bank continues to complain about the value of the Swiss franc against the Euro, and we aren’t too awfully far from the levels where the SNB got involved and started selling the Franc. With that, I feel that the market will continue to have quite a bit of support here, and a move above the 1.2145 level, or in other words a break above the two hammers that we have seen in a row should signal a move back to the 1.2175 handle.
This is a relatively tight consolidation area, but quite frankly it seems fairly reliable I think that the 1.2175 level is reasonably comfortable for the market to return to, and a break above there could in fact go as high as the 1.2230 area. A move above the 1.2175 level would of course be choppy, but ultimately that’s what this pair has been going for quite some time.
1.20 should be the absolute floor.
The Swiss National Bank got heavily involved at the 1.20 level previously, with that being the case, I think that the market should see a lot of buying pressure in that region as traders will come in and play the most obvious support level on the chart. I don’t think we get down there anyway, but that being the case the market should see quite a bit of support between here and there. The Euro is under a significant amount of pressure, but the fact that this somewhat random level has been so supportive makes me think that perhaps there is the possibility of the Swiss National Bank been involved secretly. This would not be the first time they’ve done that, so it’s not exactly a stretch of the imagination to think that for level could mean something to somebody in the SNB. I have absolutely no interest in selling this pair under any circumstance.
