Looking to Buy EUR/CHF
We don’t usually incorporate fundamentals into our trade ideas but it is hard to ignore the very well publicized SNB 1.2000 floor on the cross and ability for the market to remain so well supported ahead of the barrier. Still, the market is technically in the process of carving a major bottom on the longer-term chart, and we continue to project additional upside from here. Favorable yield differentials also don’t hurt and we look for the current test of the 1.2000 barrier to more or less be well defended ahead of the next major upside extension. Dips below 1.200 should therefore be nothing more than an exercise in stop hunting and buying towards 1.1950 is certainly a good countertrend strategy.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.