The Euro has fallen against the Swiss franc during early trading on Monday, which makes sense considering that we continue to see a lot of nonsense coming out of the Middle East.
EUR/CHF
The Euro has fallen against the Swiss franc during early trading on Monday, which makes sense considering that we continue to see a lot of nonsense coming out of the Middle East. The Americans and the Iranians supposedly were fairly close to a 60-day memorandum of understanding yet again, but the Iranian military has since threatened the Americans, willing to go straight back to war with any signs of aggression. So really at this point, it's a little bit difficult to become overly optimistic that traders are about to see some type of sudden bullish behavior.
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Ultimately, the market still continues to see an uptrend, and of course, you still get paid to hold Euros against the Swiss franc. But we are also near an important area around the 0.94 level. The market has massive support at the 0.93 level, and the 0.93 level is starting to attract the attention of the 50-day EMA.
Support Levels and Geopolitical Risks
Ultimately, I do believe this is a market that will find its way higher over longer-term moves, but we may be a little extended at this point. I look at any pullback here as a potential buying opportunity in a market that, quite frankly, should continue to attract dip buyers over the longer term.
I will not short this pair. I have no interest in paying the swap anyway, and therefore, I look at this as a potential opportunity every time it drops. I do not like the idea of jumping in with a huge position though, because quite frankly, this is a market that, if we get a sudden flare-up in the Middle East, could see some bearish pressure as traders may choose to run to the Swiss franc as part of the short-term safety trade. I don't necessarily believe that's imminent, but a headline could come across the wires at any moment and change the overall attitude.
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