(MENAFN- Daily Forex)

• The euro rallied rather significantly during the trading session against the Swiss franc on early Wednesday.
• That being said, the market is likely to continue to see a bit of volatility in this area as we are approaching the 50-day EMA and the 0.9325 level, an area that had been of significant resistance previously.

Pullbacks are Possible

Ultimately, this market could very well pull back, but that pullback ends up being a buying opportunity from everything that can be seen. The Swiss franc has softened during the trading session, but perhaps more importantly, the Swiss National Bank has stepped in front of the market and explained that they are going to be watching the Forex markets, and it's likely about the Swiss National Bank either has intervened or may be getting close to doing so as traders continue to look at this through the prism of a market that has been a little bit overdone. Therefore, we need to determine whether the trading community will continue to test the patience of the Swiss National Bank or simply let this be the bottom.

EURUSD Chart by TradingView

The 0.92 level has been important multiple times, going back to the middle of the summer in 2024. So, this is an area that matters. If we do pull back-and that is likely-it will probably end up being a buying opportunity. Keep in mind that the Swiss watch the euro very closely against their own currency, as 80% of Switzerland's exports end up in the EU. Therefore, this will be the battleground. It looks bullish. The market may not explode to the upside, but before it's all said and done, it wouldn't be surprising to see 0.9450 targeted again.

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