By: DailyForex.com

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.

EURCHF 81214

Related Articles
  1. Mutual Funds & ETFs

    3 PIMCO Funds Rated 5 Stars by Morningstar

    Learn about three fixed income mutual funds managed by Pacific Investment Management Company (PIMCO) that have received five-star overall ratings from Morningstar.
  2. Mutual Funds & ETFs

    3 Invesco Funds Rated 5 Stars by Morningstar

    Learn about the top three mutual funds administered and managed by Invesco Ltd. that have received a five-star overall rating from Morningstar.
  3. Mutual Funds & ETFs

    The Top 4 Russell Funds for Retirement Diversification in 2016

    Discover four mutual funds administered and managed by Russell Investments that would add diversification benefits to a retirement portfolio.
  4. Mutual Funds & ETFs

    The 3 Best American Funds for the Income Seeker in 2016

    Learn about American Funds' mutual fund offerings, their past performance compared to peers and three American funds to consider for income investors.
  5. Investing News

    Obama Wants to Double Wall Street Regulation

    President Obama wants to double the budgets of the SEC and the CFTC over the next five years.
  6. Budgeting

    Is Living in Europe Cheaper than in America?

    Learn how living in Europe has financial advantages over living in the United States. Discover the benefits to take advantage of when it makes financial sense.
  7. Investing

    Buy Stocks Now? Nope. Here’s Why

    Hedgeye Senior Macro analyst Darius Dale explains the fallacy of Wall Street’s S&P 500 year-end targets.
  8. Retirement

    Top 5 Cities To Retire To In Croatia

    Cheaper than the Italian coast along the Adriatic Sea, but full of natural beauty, good food and active sports.
  9. Home & Auto

    The Latest Airbag Recalls: What to Do

    The latest warnings are from Honda/Acura and Dodge. How to look up your car – and what to do if you find it on the recall list.
  10. Term

    How Traditional IRAs Work

    A traditional IRA is a tax-advantaged retirement account that includes stocks, bonds, mutual funds and other investments.
RELATED FAQS
  1. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  2. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  3. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  4. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  5. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
  6. What is comparative advantage?

    Comparative advantage is an economic law that demonstrates the ways in which protectionism (mercantilism, at the time it ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center