EUR/CHF Forecast January 27, 2016, Technical Analysis

The EUR/CHF pair rose drastically during the course of the day on Tuesday, as we finally clear the 1.10 level. Above the 1.050 level, we believe that the market can continue to go much higher as the market will then have “dead air” going all the way to the 1.20 handle. Ultimately, we believe pullbacks at that point in time would be nice buying opportunities as well. Remember, there was a massive gap lower essentially when the Swiss National Bank removed the currency peg which had been at the 1.20 handle. We believe that a break higher sends this market looking for that level yet again.