EUR/CHF Forecast Today - 24/10: Euro Bounces (Chart)
Date
10/24/2024 2:44:53 PM
(MENAFN- Daily Forex)
In my daily analysis of the EUR/CHF pair, a pair that I watch quite often to get an idea as to what risk appetite is doing, I noticed that the euro is in fact trying to bounce from the crucial 0.83 level. The 0.83 level has been important multiple times in the past so it should not be a huge surprise to see that it is showing signs of life again. After all, the market had gotten“a bit too overdone” to the downside, so I think it does make a certain amount of sense that we reenter the previous consolidation region.
All of that being said, it's probably worth noting that the 0.83 level has been support multiple times in the past, and therefore it is worth watching on the whole. The market will continue to see a lot of noisy behavior, and I think it will be paying close attention to this area, because quite frankly the Swiss National Bank has a long history of intervening when this pair falls apart. Because of this, I think the downside is somewhat limited, and I think a lot of traders out there are a little bit concerned about the idea of trying to short this pair. After all, a strong Swiss franc against the euro would in fact cause a lot of problems for the Swiss economy, as something akin to 85% of all Swiss exports end up in the European Union.
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The technical analysis for this pair is obviously very negative, but at the end of the day I think we are more or less in a situation where we are going sideways and consolidating. I think this is a scenario where traders are likely to continue to go back and forth between the 0.83 level and the 0.84 level above, which also features the 50 Day EMA dropping. In general, I think this is a situation where we see a lot of noisy and choppy trading, but if you are in fact a range bound trader, this might be a decent market to be involved in at this point in time.
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