Time To Bet On The SNB?
- Price action turning more supportive in the cross
- EUR/CHF nearing important upside pivot
Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.
EUR/CHF has been stuck in a tight range above 1.2050 for well over a month now. This probably is surprising to many given the SNB’s assurance that it remains wholeheartedly committed to defending its “loose peg” exchange rate policy. The lack of upside progress in the cross over the past month highlights one of the main problems with betting on a central bank to intervene as they don’t necessarily need to do it right away. Trading has been listless, but it is now finally beginning to show signs of perking up as the price action of late on the daily is starting to resemble a base. A move over last month’s high at 1.2117 would help confirm that notion and set the stage for a decent rally. My hunch is that the SNB was probably involved in the low around 1.2045 in early September in some way or another so that level should hold if the market is really turning up here.
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EUR/CHF Daily Chart: October 3, 2014
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risk in the Week Ahead:
LEVELS TO WATCH
Resistance: 1.2085 (Gann), 1.2117(Sep High)
Support: 1.2070 (Gann), 1.2043 (Sep Low))
Strategy: Buy EUR/CHF
Entry: Buy EUR/CHF at 1.2070
Stop: 1-day close below 1.2043
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail firstname.lastname@example.org. Follow me on Twitter at@KKerrFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.