EUR/CHF: Buy above 1.2 for June 13 -15, 2012 2012-06-13
Forecast:
At 1.2 a strong level (Support) will be formed providing a clear signal for Buy-deals with the target seen at the 1.254 level. Stop Loss is to be placed below 1.1850.
EUR/CHF: The market continues to show signs of strength following the break above 1.2000. Therefore it will turn to a strong support. In such case, a stronger rise should be seen towards 1.2524 resistance for confirmation. Moreover, the trend is still above 50% Fibonacci retracement level, thus it will be a good sign to buy above 1.2 and sell below 1.1850.
Types of Analysis:
Fundamental analysis: The Swissie is also quoted as saying that they will “buy unlimited Euros in order to support this market.
Technical analysis: On a daily chart the level of 1.2 coincides with the golden ratio (61.8% of Fibonacci retracement levels) then it indicates for a bullish market.
Sentiment analysis: Psychology level is at 1.2000, than one should be patient to keep the trade to end.
Money management: Always invest 3% - 7% of the capital (composite) per all trades, always risk (Stop Loss) 1% - 5% of the capital per all trades, and always trade high risk ratio trade at least ½.
