Swiss Franc May Continue To Slide Against Euro In 2009

The Franc is at a new 2-month low against the Euro at its current price of 1.5605. I have been analyzing the charts and I see that for the short term I believe this pair is overbought. But in the long term, I think this pair will continue to make new highs once the long positions have taken their profits and the trend continues. As you can see from the 3-hr candles below, I think the short-term rally will come to a close for the next 1 or 2 days and could create a nice pullback for a few hundred pips.

But if you look at the 1 day charts below, you’ll see that the EUR/CHF pair has plent of room to run into 2009 to retrace it’s highs of 1.6700 at the beginning of 2008 before a steady decline. There is currently a nice bull channel that has been forming since the middle of October.

I don’t see any news releases that would be important to watch today for where this pair is heading. I’ll continue to monitor this position, but feel that the Swiss Franc is one of the weaker G10 currencies right now and could be heading for a rough holiday season.

Have a great day and stay tuned for more frequent articles this week.

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