The past five trading sessions shows the EUR/CHF is nearly within the center of its range. However, the past month of results for the forex pair has seen the Euro gain against the Swiss Franc, albeit in a polite manner that has not set off alarm bells in financial institutions. In fact, the trend has allowed traders to pursue short term momentum and take advantage and profit from the bullish movement for the EUR/CHF. The past month of trading has produced a range of 1.06100 to 1.083800.
Test of higher resistance levels near the 1.083800 has occurred in the past two weeks as the EUR/CHF has incrementally seen support levels rise as the bullish trend has developed. The recent strength of the Euro against the Swiss Franc may be a display of greater risk appetite in the global markets. However, in mid-May of this year, the EUR/CHF did hit a value of 1.05000 as the Swiss Franc attracted safe-haven investors.
The EUR/CHF remains a mirror image of risk sentiment in financial institutions. The ability of global equities to sustain buying, and for investors to remain optimistic has fueled the bullish trend of the Euro against the Swiss Franc since late May. However, definite reversals have been seen on occasion and they will continue to take place and challenge traders.
Traders of the EUR/CHF can move with relative comfort within this forex pair. Yes, strange things can always happen, but if a trader is careful regarding their use of stop losses the highly transparent nature of the EUR/CHF does not bring a lot of discomfort.
It should be noted when the EUR/CHF sees too much bearish activity, the pair can see surge which may come directly from the Swiss National Bank. However, present trading conditions appear to be comfortable and the trend of the EUR/CHF may continue to produce bullish sentiment.
Speculators who believe the EUR/CHF will continue to test resistance levels higher could be tempted to enter the market with buying positions and place stop losses fairly close to their opening positions to protect against losses. If risk appetite remains optimistic in Europe, the Euro may continue to find buyers against the Swiss Franc in the short term as higher targets for the forex pair are speculated.
Swiss Franc Short Term Outlook:
Current Resistance: 1.07880
Current Support: 1.07570
High Target: 1.08100
Low Target: 1.07300
