- The Euro has rallied again against the Swiss franc during the trading session on Thursday, as we are trying to get to the 50 day EMA.
- The 50 day EMA is sitting right around the 0.96 level, and therefore I think it all ties together for an area that's going to be difficult to get above.
- Furthermore, it's worth noting that when you look at the way this pair behaved during the entirety of the summer.
It's been one massive V pattern after another. In other words, we've seen the market do abrupt turnarounds multiple times. This tells me just how bad risk appetite is at the moment because this is a great measure of risk appetite in general. When Europeans feel threatened financially, they put money in Switzerland and therefore the Swiss franc gains against the euro. On the other hand, when they feel like taking a bit of risk, they pull money out of Switzerland and put it into Europe, just as the Swiss will put money into Europe as well. At this point, you can see just how erratic and how scatterbrained the market has been.
Top Forex Brokers
There will be more noise
So, it's not a huge surprise to see that this behavior has continued in this vein. We are overstretched and probably due for some type of pullback, but I do like the idea of a market that is in the process of perhaps trying to build a little bit of a base as the 0.92 level underneath is a major long-term support level. However, we've gotten too far in too short of amount of time, so we will have to see what the next pullback brings and whether or not there's a bounce. I would prefer to buy the next bounce after the next pullback. At this point in time, I think that if you are starting to buy this pair now, you are simply chasing momentum again, and more likely than not going to see losses.
Ready to trade our daily Forex analysis? We’ve made this forex brokers list for you to check out.