EUR/CHF eyes 1.1000 post-SNB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The Swiss franc is succumbing to the increasing buying interest around the single currency today, now sending EUR/CHF to test session tops near 1.0990.

    EUR/CHF muted after SNB decision

    The cross keeps the upside unaltered after the SNB has left its monetary conditions unchanged at today’s meeting, with the target range for the three-month Libor at between -1.25% and -0.25% and the interest on sight deposits at -0.75%.

    The SNB has reiterated the franc remains ‘overvalued’, while it continues to be ready to intervene in the FX markets if needed. The central bank has revised lower its inflation forecasts, citing lower energy prices as the main reason in the near term, while global low inflation and a tepid global outlook will impact on prices in the longer run.

    EUR/CHF significant levels

    As of writing the cross is advancing 0.23% at 1.0987 facing the next hurdle at 1.1036 (post-ECB high Mar.10) followed by 1.1056 (61.8% Fibo of 1.1211-1.0804) and then 1.1115 (76.4% Fibo of 1.1211-1.0804). On the other hand, a drop below 1.0939 (20-day sma) would aim for 1.0908 (100-day sma) and finally 1.0804 (2016 low Feb.29).
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