- The euro initially fell against the Swiss franc during the session here on Friday, but we have turned around to show signs of life again near the 0.9450 level.
- By doing so, the market is now hanging around the 200 day EMA yet again.
- I think it's a situation where we look for buying opportunities on short-term pullbacks.
After all, this is more of an indictment on the Swiss franc than it is the euro, which had recovered a bit during the day against multiple currencies. And you have to keep in mind that the Swiss National Bank recently cut interest rates by 50 basis points when it was only expected to cut by 25. That is a very negative turn of events.
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A Noisy Area
However, I do recognize that we're in an area that's going to be very noisy, so therefore you have to be somewhat cautious with your position sizing. We are in the midst of trying to turn things around and perhaps take off to the upside after falling all the way down to the crucial 0.9250 level a couple of months ago, which has been a long-term floor in the market.
How far can we go to the upside remains to be seen, but I do think that the 0.9550 level is a very possible target and then after that we could be looking at a move to the 0.9750 level. Short-term pullbacks continue to see plenty of support, extending all the way down to the 50-day EMA at the 0.94 level. I do think as long as the Swiss National Bank is so dovish, it's probably only a matter of time before this EUR/CHF pair rises. Keep in mind, it can be very choppy though, so you have to be patient.
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