- The Euro has broken a little higher against the Swiss franc during the trading session on Monday, breaking the bank of a shooting star from the previous week.
- This is a good sign that we may go higher and it’s probably worth noting that the Swiss franc had a little bit of trouble during the day.
- Regardless, ultimately, if we do rally from here, the market is likely to go looking to the 0.95 level above possibly even the 0.96 level short term pullbacks open up the possibility of a move to the 200 day EMA which is a longer term trend indicator that a lot of people will be watching followed by the 50 day EMA underneath, which could offer a bit of support for technical traders.
I Don’t Like Shorting
I don’t necessarily like the idea of shorting this market, but if we get a deviation from risk appetite and we see a lot of people worried, it’s likely that this pair probably drops due to the fact that the Swiss Franc is considered to be a safety currency.
All things being equal though, we will have to wait and see how things play out, but we are doing everything we can to break out of the previous consolidation range, and you do get paid to hang on to this trade via swap. I don’t necessarily think it is something that is worth being overly concerned about, but it is something that does add to the general upside attitude.
The Swiss national bank will quite often get involved if this pair falls too far too rapidly, so that is something that I always keep in the back of my mind, but right now it looks like we are trying to break out and go higher.
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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.