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EUR/CHF drops further to test 1.0800 post-SNB decision

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 10, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/CHF cross dropped sharply to 1.08 handle following the Swiss National Bank’s (SNB) unchanged rated decision, which was widely expected.

    SNB maintains “Still Overvalued” tune.

    Currently, the EUR/CHF pair trades -0.28% lower at 1.0808, heading for a retest of 1.0802 struck shortly after SNB policy announcement. The Swiss franc regained momentum versus its European peer after reversing the knee-jerk to pre-SNB levels and jumped higher once again as markets digest the latest SNB’s rates on-hold decision.

    Also, SNB reiterated its willingness to intervene in markets as Swiss franc still remains significantly overvalued, which keeps a lid on the gains in the CHF versus the euro.

    At its latest monetary policy decision, SNB affirmed -0.75% interest rate on sight deposits and held 3-M libor target range at -1.25% to -0.25%.

    EUR/CHF Technical Levels

    To the upside, the next resistance is located 1.0840 (50-DMA) levels and above which it could extend gains to 1.0864 (100-DMA). To the downside, immediate support might be located at 1.0790 (Dec 9 Low) and below that 1.0771 (Dec 3 Low).
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