Tuesday, November 30, 2010

EUR/ CHF – Instability in Eurozone may push Euro down further


Dean Wright ,Senior Analyst ,Fxknight.com



As the confidence in the Euro continues to fall amid the fears of the fiscal crises in Europe, the EUR dropped sharply against most currencies including the CHF.

The EUR/ CHF has been playing to a Fibonacci projection since 2008 and is currently consolidating after reaching the 161.8 % level.

It is likely that the EURO will continue to fall with the release of the bailout for Ireland in which case, the 1.3038 price level may break and act as resistance, pushing the EURO even further as sellers drive the price down to the 200 Fibonacci level at 1.2257.

Should the EUR/ CHF find buyers, it will most likely be at 1.3038, however the two long targets that have recently been strong resistance are 1.3750 and 1.3934





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