- The Euro continues to advance against the Swiss franc as the Swiss National Bank’s stance limits franc strength.
- Technical levels such as 0.92 support and the 200-day EMA guide the outlook, with higher targets possible but progression expected to be slow.
The Euro rallied during the early hours on Tuesday against the Swiss franc yet again. This makes sense considering that the Swiss National Bank has been very clear about how it does not want to see the Swiss franc strengthen quite drastically. The 0.92 level is an area that has been very supported over the last several attempts to break through it, and it looks like a hard floor. It's also worth noting that the Euro did come within a whisker of touching the 200-day EMA, which, of course, is an indicator that a lot of people will be watching. Short-term pullbacks end up offering buying opportunities as a pullback and a bounce is exactly what I'll be looking for. The 50-day EMA is near the 0.9297 level and rising.
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Technical Structure and Trend Outlook
If we can clear the 200-day EMA, then you have the actual definition of an uptrend. We have made a higher high. And at this point, I think you've got a situation where the Swiss National Bank has scared the market away a little bit. But at the same time, if there's a little bit more risk appetite out there, it does make a certain amount of sense that the market will continue to see a push higher here as the Swiss franc is a major safety currency.
The market continues to see a lot of volatility and choppiness, but I do think you're looking for value here. I don't have any interest in shorting this pair, although I'm not necessarily looking for the Euro to explode to the upside either. The 0.96 level will be our destination, given enough time, I anticipate, but I also recognize that it could be months down the road. Keep in mind, this is a slow-moving currency pair.
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