After CHF-fallout

After last week everyone is still talking about decline on swiss crosses. To be honest, I was also suprised about decicion of swiss central bank. Lets look at charts and see where frank is compared to other currencies.

On eur/chf swiss bank for longer time was holding 1,20 level. After decision to stop this action, eur/chf went down to 0.77 level, but only for couple of minutes. Today eur/chf is somewhere around 1.0 level, below monthly chart:

eurchf-january-15

What is the future for eur/chf? Hard to say, it depends from other decisions (if there will be any). We know for sure that 1.2 is a strong resistance. Now buyers tries to find support at 1.0 level. We will see if they manage to hold that. I think that in loger time frame we may expect some rapid moves both up and down (but the main trend is down).

Similar situation is on usd/chf. Of course in both cases in longer frame we are in a downtrend, monthly chart:

eurchf-january-15

It is really situation, when it is hard to predict what will happen. It should be a reminder for all traders, that markets can suprise you. In that case one decision changed everything and caused an earthquake. We are not talking about some exotic currency but about swiss franc – one of most important currencies after euro and dolad. Diversification and smart money management is a must in todays investing world.