- The Euro has gone back and forth during the course of the trading session on Monday, as we're hanging around the 50 day EMA.
- The 50 day EMA of course is an indicator that a lot of people will be paying attention to and with that being said, the market continues to see a lot of questions asked as to whether or not the risk appetite is picking up or if it's falling if it's picking up that generally favors the euro against the Swiss franc as of course the Swiss franc is considered to be a safety currency.
- The Monday session has shown a bit of confusion and uncertainty and that suggests to me we are going to continue to see a lot of chop and noisy behavior.
On the Move Higher…
If we can break above the top of the candlestick from Friday, then perhaps the euro could go looking at the 200 day EMA above and then the crucial 0.95 level. If we can break above the 0.95 level, then we have a real shot of the market truly taking off and breaking out to the upside. If we turn around and break down below the 0.9350 level, then it opens up a move down to the 0.9250 level.
In general, I think this is a scenario where we continue to see a lot of noisy behavior, but I also recognize that when you look at the pair from August of 2024, we are in the midst of forming something that looks a lot like a rounding bottom. So, we'll just have to wait and see. I do favor the upside, but I don't really like the euro. So, it's just that I like the Swiss franc less. And that's generally what Forex trading is.
EUR/CHF Live Chart
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