The EUR/CHF has held a tight range throughout the month amid speculation for an intervention by the Swiss Nation Bank, and the pair may continue to move sideways over the near-term as investors weigh the outlook for future policy.
[B]Currency Pair:[/B] EUR/CHF
[B]Chart: [/B]60 Min Charts
[B]Short-Term Bias:[/B] Flat
[B][U]Analysis[/U][/B]
The EUR/CHF has held a tight range throughout the month amid speculation for an intervention by the Swiss Nation Bank, and the pair may continue to move sideways over the near-term as investors weigh the outlook for future policy. After slipping to a low of 1.4299 in October, the euro-franc bounced back to reach a high of 1.5885 on 12/15, but the lack of momentum to push back above 1.5270-80 (38.2% Fib) paired with the dovish policy stance held by the European Central Bank is likely to keep the pair within range as the Governing Board pushes into uncharted territory in an effort to stem the downside risks for growth and inflation. At the same time, mounting risks for deflation could lead the SNB to step up its efforts, and is likely to keep the floor on the exchange rate as the region faces its worst economic downturn in over a quarter century. Over the next few hours of trading, we may see the pair trend higher as it holds along the 120 SMA however, as risk trends continue to dictate price action in the currency market, the fall in the global equities market may lead the pair lower over the session. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
[I]To contact the author of this article, please email: <[email protected]>[/I]
[B][I][I] Related Articles:[/I][/I][/B]
[I][B]Forex Trading Weekly Forecast - 06.08.09[/B][/I]
[I][B]Forex Strategy Outlook: Systems Latch on to US Dollar Reversal[/B][/I]
[I][B]US Dollar Confirms Sell Entry Against Euro, Other Majors To Follow[/B][/I]