EUR/CHF Forecast February 3, 2016, Technical Analysis

The EUR/CHF pair initially rose during the course of the session on Tuesday, but turned back around to form a bit of a shooting star. Because of that, the market looks as if it is ready to pull back, but the 1.10 level below should be a massive support level that the market will respect. We like pullbacks in order to take advantage of value in the Euro as we have certainly broken out above massive resistance. Because of this, the market should continue to go higher over the longer term so we like the idea of buying pullbacks that show signs of support.
We also like breaking above the top of the shooting star as a reason to start buying as well. We believe that eventually this pair does go all the way to the 1.20 level, as it is where the Swiss National Bank abandoning its currency peg. There has been a bit of a vacuum as far as ordered are concerned, so we feel that it’s only a matter of time before the market grind its way to the aforementioned 1.20 level. Ultimately, this is a market that should be one of the best trades the sheer, and although we fully anticipate seeing this market go much higher, we do recognize that it will be a straight shot higher, so what we are choosing to do is add to this position every time we pullback with just small amounts. Eventually, we will have a large amount when it comes to the trade size and we will take advantage of that way higher.
Ultimately, we also have the ability to be patient in this trade, because it was such an obvious and important breakout. Ultimately, this is a market that is being supported by the Swiss national bank as well from we can tell, so at this point in time this is a “buy only” type situation and to be honest we don’t really see an opportunity to sell anyway. This is probably going to be one of our favorite trades this year. - The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.

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