EUR/CHF: Will it break 1.0900?

By FXStreet FXStreet (Córdoba) – The euro continued to recover today after falling last week to the lowest level in almost two month against the Swiss franc following Mario Draghi press conference. Expectations that the European Central Bank would increase its monetary stimulus weakened the euro and pushed EUR/CHF to 1.0756 (Oct 23 low).

On Monday the pair started to recover and rose sharply; today climbed further and reached 1.0890, level located above the one it had before the ECB meeting.

The key 1.0900 area

The rally of the pair found resistance slightly below 1.0900, like it happened last week. The area around 1.0900 has become a key static resistance and also were currently a downtrend line from September highs stands.

A break and a confirmation on top of 1.0900 could open the doors for more gains. A possible short term target is the 1.0950 area; above attention would turn to 1.1000. A failure to rise above 1.0900 could increase expectations of a retreated toward 1.0800.
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Source:: FX Street