It was quite a busy day in Zurich last night as the Swiss National Bank indicated growth was strong, inflation was under control, and any excessive weakness in the Swiss franc would most likely be met with rate hikes. USD/CHF sellers took those comments to heart and went right after the stops (including mine) beneath the yearly 1.2558 low. The pair traded down to a 1.2485 low before rebounding some 35 points to a current rate of 1.2525.

I was bidding at yearly support levels in USD/CHF hoping that EUR/USD would be at 1.2600 resistance and the US dollar would stage a brief comeback. But unfortunately, EUR/USD was still 50 points short of the 1.2600 level as USD/CHF was being hammered through daily support in reaction to the news. So now what we have been left to contend with is a nice EUR/USD target of 1.2600. Notice the 1.0 Fib projection as well as the 2.0 Fib extension place resistance at the upper end of the parallel trend channel at the 1.2600 zone.

Let's look to establish longs close to the minor uptrend support below 1.2500 with stops below 1.2450 targeting 1.2600. Any price we accept above 1.2550 will skew our risk/reward ratio into a no-trade status.

EUR/JPY has put in a impressive rally from the deep retracement to sub-142.00 this week as the scar of Sunday's gap could still be in mind. If we see a push through 143.50, the likelihood of a gap fill to 144 is possible.

Keep in mind that we are at month's end and trading could be whippy as traders square up their books after a busy month. So tread lightly and take what you can get today.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.