EUR/CHF Forecast February 12, 2016, Technical Analysis

The EUR/USD pair initially fell on Thursday but found enough support to turn around and break above the top of the hammer from Wednesday. Because of this, looks like the market is going to continue to go higher, and as a result we should then reach towards the 1.12 level. Because of that, we are bullish again and we believe that the market should continue to show bullish pressure and should eventually grind higher. Quite frankly, this is one of her favorite longer-term trades, as the market continues to show a favoritism towards the Euro.
The 1.10 level of course is rather substantial, and having said that it makes a lot of sense that the market would continue to grind its way to the upside. We believe that this market will continue to find buyers every time we pullback, because the 1.10 level was so important and of course resistive in the past. That means that we should find plenty buyers in this general vicinity as well. Ultimately, if even mind that the Swiss National Bank looks as if it is continuing to work against the value of the Swiss franc, and that should continue to push this market higher.
Ultimately, every time we pullback there is probably going to be a short-term opportunity to take advantage of value in the Euro and we believe that the market will probably try to take back the currency peg level that had been given up by the Swiss after 4 years. That was the 1.20 level, and with that being the case the market looks as if it should continue to find plenty of interest in this particular pair.
Adding more pressure to the upside in this market is the fact that the Euro has been rallying against the US dollar as well. That’s the actual benchmark of a currency, how it performs against the US dollar. Ultimately, it looks as if the Euro is going to start doing fairly well and we are bullish. We have no scenario in which we are wanting to sell this market now.