20 July 2011 FX session
Looking at the EUR/CHF you can see that the pair did skyrocket quite a bit (almost 160 pips) which is a remarkable move for this pair. It should be noted that in the big scheme of things we are in a bear market for this currency pair. Somewhere close to the 1.18 area, which is a massive support area, we are going to between the 38 and the 50 on the fibbonani range. At this point we will be looking for a bearish candle to again be selling this currency pair short.
Looking at the EUR/JPY it is a completely different story as this pair barely budged during the day. This is strange as generally the JPY gets sold off when traders go into risk related assets. In this case it did not which can be a warning that the EUR may not have true strength. We currently see the 113.50 level as a massive resistance level. If the price rallies to this level we will be looking to short it upon evidence of a bearish candle at that level.
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