EUR/USD, USD/CHF — February 22nd 2012
Watch the latest analysis of the EUR/USD, USD/CHF Forex pairs for the February 22nd in this video. EUR/USD — We gapped up over the weekend and had a relatively positive action in response to the bailout that the Greeks have received. Last couple of days produced shooting star candles consecutively at the 1.3250 area. This area is also the 38.2% fibonacci retracement level from the fall of the year. The break of the bottom of the range from the Monday and Tuesday session sends this pair looking for support at 1.30 level. We don’t neccessarily call for a meltdown but we do think that the move down could come on a break lower. A break higher is bullish but there is a lot of choppy resistance between here and 1.35 level. USD/CHF — This pair formed another hammer on the daily chart on Tuesday session. The 0.9100 to 0.9000 level is massive support zone tested time and time again. With the SNB set a floor of 1.20 for EUR/CHF pair, this pair could only fall so far. This pair will react to any intervention of SNB with EUR/CHF pair. With the dollar seen as a safe haven trade and the Swiss is highly exposed to the European economy, it makes sense that this pair will not see much lower pricing. We like the break of the top of the Tuesday session and if we get it, we will seeing the 0.9500 level and selling is not an option at this moment.
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