- The euro has gone back and forth against the Swiss franc during trading here on Thursday in a very choppy and tight range.
- That’s not a huge surprise and really at this point, I think we still find ourselves in a situation where people are trying to figure out exactly where risk is going in a world that presently has a ton of potential bombshells to go off.
- Right now, we are trading between the 200 day EMA above which is a technical indicator that attracts a lot of attention, and the 0.93 level below. The market has triple bottomed near the 0.9250 level.
Have We Bottomed?
So now the question is, did we finally find the floor? The Swiss franc is a safety currency. And I think that’s part of what’s going on here, because the world is burning. And it’ll be interesting to see if people continue to run towards Switzerland or if they run away from it in signs of hope. It’ll be very interesting to see how this plays out.
But I think ultimately, you’ve got a situation where short-term back and forth traders probably profit here as we have a fairly well-defined short-term range that the market has been following for about a month and a half.
Sooner or later, we’ll get more information and that will make the markets move. But in the meantime, this is a market that I think a lot of people will be using the 15-minute chart with to take advantage of subtle movements. The situation between the Iranians and the Israelis, although not directly influencing this Swiss economy nor the EU economy, obviously has taken front and center as far as the attention of traders is concerned. And if we get some type of peaceful resolution, that could be reason enough for this pair to rally. Just have to wait and see.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.