EUR/CHF Forecast Today 13/12: Near The Bottom? (Video)

(MENAFN- Daily Forex)

• The Euro shot higher against the Swiss franc gaining 0.6% as I record this video, mainly due to the reaction of Central bank actions earlier in the day.
• We had the Swiss cut by 50 basis points, which was more than the expected 25.
• So, it does make sense that the Swiss franc has lost some ground.

The Europeans have cut by 25 basis points, which was expected, but they're hinting that maybe there's another cut down the road. All things being equal, we are at a major support level, at least we were at the beginning of the day at 0.9250. So, it does make a certain amount of sense that we are trying to pick things up. When you go back all the way to 2002, which is far back as Trading View will show you. You can see it's just been a plunge the whole time.

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This is an area that's been held a couple of times in the past. So, it does make a certain amount of sense that there is a bounce. The question of course is, what about those cuts coming out of the European Union? I think this does clear the way for a little bit of a bounce, but down the road, things are going to look dire there as well. I think this is going to be a fight between a couple of lightweights. Eventually,

The Swiss National Bank may lose its patience and get involved. They are known to intervene in this pair, but right now that would only be predicated by a severe breakdown of the EUR/CHF. The Swiss want a weak currency. They just don't get to have it. If we break above the 50 day EMA, that opens up a move to the 0.9450 level. Or if we fall from here, it probably opens up a little bit of a buy on the dip opportunity for short-term traders.

EURUSD Chart by TradingView

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