EUR/CHF Forecast Today - 12/06: The Euro Plummets (Chart)
Date
6/12/2024 2:44:54 PM
(MENAFN- Daily Forex)
The euro has plunged as of late, especially as the ECB is cut rates, and of course we have had snap elections called in France. The Belgian prime Minister resigned, and the Political situation in Europe seems to be a bit of a mess at the moment, so that had people running away from the euro itself. However, it's worth noting that there's more than that going on in this currency pair EUR/CHF .
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Remember, It's About Switzerland as Well
The Swiss franc of course has been soft until the last week or 2, as the Swiss National Bank has cut rates and were the first to do so. At this point, the market still pays you to hang onto Swiss franc denominated currency pairs, at least with most currencies. The euro does pay swap at the end of the day and the fact that we are starting to form a bit of a hammer during the day does suggest that perhaps we could start to see the euro find its footing. It's also worth noting that the previous candlestick was unchanged, although there were a couple of moves to the up and downside, and that suggests that perhaps we are starting to run out of selling pressure.
If we can turn around and break back above the 0.79 level, I believe this market could make a run toward the 0.99 level above, which was the swing high. Anything above there opens up the realistic possibility of parity, and it's probably worth noting that level will attract a lot of attention. If we can break above there, then longer term“buy-and-hold traders” more likely than not will jump into this market. It's probably worth also noting that we are hanging around near the 50% Fibonacci retracement level, which has certain technical traders out there paying close attention to it as well. In general, I expect to see a lot of back-and-forth, but it does seem as if we are more inclined to bounce from here than to break down.
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