EUR/CHF Forecast: Eyeing 0.95 Support and 50 EMA
- The Euro has been very noisy during the trading session on Wednesday as we continue to bounce around the 0.95 level against the Swiss franc.
- We have seen a little bit of selling pressure of the last couple of days as the market reached the 50 day EMA, but it's also worth noting that this is a market that is going to be paying close attention to risk appetite globally.
This is mainly due to the fact that traders in the European Union naturally send money into Switzerland for safety and pull it out of there when they start looking at the possibility of taking a little bit more risk. If we can turn around and break above the 50 day EMA, I think the Euro goes much higher, perhaps reaching towards the 0.9775 level. This would be a strong sign, as the market will be more of a “risk on” situation.
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1If We Start Falling
If we were to drop from here, I think at this point in time, the 0.9350 level is an area where we would see a significant amount of support. Keep in mind that historically speaking, we are at extreme low levels, and I do think that there are plenty of value hunters out there willing to take advantage of these dips. This could be a major turning point for a longer term move, so there's no need to jump in with both feet and open up a huge position.
Most longer-term traders are starting to build the positions, adding a little bit here and there when the market goes in their way. If we were to break down below the 0.92 level, that would obviously be extraordinarily bearish. And at that point in time, I think you would have some type of financial issue that was having traders jump in and find safety in any form that they can. Unless we get some type of complete breakdown, it's likely that there should be buyers underneath.
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