The EUR/CHF pair is one that has been neglected and ignored by most of you out there. What frankly, it’s not really a big surprise as this market has been very difficult to be excited about for some time. Nonetheless, I see a potential buying opportunity if we can get above the 1.2160 handle. If that happens, I think that the consolidation area will come back into play, but it could be a very slow moving trade.

At this point in time, I think that the 1.21 level is pretty safe as far as a “floor” in this market, especially considering that the Swiss National Bank has lost its sense of humor about an extraordinarily strong Swiss franc. I think that if we drop below there, it’s only a matter of time before the SNB gets involved in starts buying this pair again. The market knows this, and therefore doesn’t really have any real interest in testing their patience.

This is going to take some patience.

I do think that ultimately this pair goes higher, but you’re going to have to be very patient with this move. This is one of those trades that you need to buy it and simply forget about it for some time, probably putting in a take profit order at the 1.2230 region. With that being the case, it’s more of an investment if you want to think of it that way, as I don’t see this pair suddenly taken off in one direction or the other. However, I would be remiss if I didn’t mention this particular setup as I just happened to notice it today. (Just by saying that statement out loud, I admit that I am guilty of ignoring this pair as well.)

Ultimately, I think we will break out to the upside, but right now there’s so much trouble with the Euro that is difficult to imagine that anything with the EUR in the front of the pair name will see massive amounts of strength. However, this pair doesn’t look like it’s ready to fall anytime soon.

EURCHF 72914

Related Articles
  1. Mutual Funds & ETFs

    The 3 Best Downside Protection Equity Mutual Funds

    Learn how it is possible to profit in a bear market by owning the correct selection of mutual funds that provide downside protection and opportunity.
  2. Economics

    The 2007-08 Financial Crisis In Review

    Subprime lenders began filing for bankruptcy in 2007 -- more than 25 during February and March, alone.
  3. Home & Auto

    Rent-To-Own Homes: How The Process Works

    A rent-to-own agreement can benefit homebuyers with bad credit or insufficient funds for a down payment. Here’s how one works.
  4. Options & Futures

    What Does Quadruple Witching Mean?

    In a financial context, quadruple witching refers to the day on which contracts for stock index futures, index options, and single stock futures expire.
  5. Professionals

    Is A Stockbroker Career For You?

    Becoming a stockbroker requires a broad skill set and the willingness to put in long hours. But the rewards can be enormous.
  6. Economics

    Industries That Thrive On Recession

    Recessions are not equally hard on everyone. In fact, there are some industries that even flourish amid the adversity.
  7. Economics

    How Warren Buffet Made Berkshire Hathaway A Winner

    Berkshire Fine Spinning Associated and Hathaway Manufacturing Company merged in 1955 to form Berkshire Hathaway.
  8. Stock Analysis

    Forest Laboratories: An Activist Investment Analysis

    Find out how patience and perseverance paid off big-time for billionaire activist Carl Icahn during his four-year fight with Forest Laboratories.
  9. Fundamental Analysis

    The Evolution of Obamacare Since Its Inception

    Find out whether the Patient Protection and Affordable Care Act, also known as Obamacare, has lived up to its lofty projections from 2010.
  10. Charts & Patterns

    How To Use Volume To Improve Your Trading

    The basic guidelines to analyzing volume may not apply in all situations, but overall, they can help direct entry and exit decisions.
  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 >>
Trading Center