The 0.96 level has been important multiple times recently, and it should be important on the way back out.
The 0.96 level has been important multiple times recently, and it should be important on the way back out. With that being the case, I’m waiting to see whether or not we can break a mother, but beyond that we also have the 50-Day EMA that could come into the picture to cause some noise. Looking at this chart, I think it is probably only a matter of time before we see sellers come in, and on and exhaustion candlestick, specifically the daily timeframe, I am more than willing to start selling again.
While the Swiss National Bank is pretty quick to intervene in the Forex markets at times, the reality is they have to know that the situation in Europe is so bad that there’s almost nothing they can do. This is mainly about the Euro than anything to do with Switzerland, although Switzerland certainly has a lot of the same problems. As long as the Federal Reserve remains tight, there is a natural amount of downward pressure on the Euro in general.
With this, I think we continue to fade rallies in the Euro against almost any currency, not just the Swiss franc. I do like the idea of getting a little bit of value when it comes to shorting this market, so I’m going to let it run a little higher before looking for an opportunity. If we can break above the 0.98 level, then I might expect to move toward the Perry level, but as things stand right now, it would take quite a bit of effort to make that happen.