Intervention in the currency markets by the SNB has certainly weighed on the appeal of the Swiss franc, and as the central bank aims to counterbalance the downside risks of higher exchange rates, the EURCHF is likely to push higher over the near-term.
[B]Currency Pair:[/B] EUR/CHF
[B]Chart:[/B] 60 Min Charts
[B]Short-Term Bias: [/B]Bearish
[B][U]Analysis
[/U][/B]
Intervention in the currency markets by the SNB has certainly weighed on the appeal of the Swiss franc, and as the central bank aims to counterbalance the downside risks of higher exchange rates, the EURCHF is likely to push higher over the near-term. After slipping to a low of 1.4299 in October, the pair snapped back to reach a high of 1.5885 on 12/15, and may continue to push higher during the month to retrace the sell off from December. The euro-franc looks to be building support around 1.5280-90 (38.2% Fib), I expect the pair work its way towards 1.5540-50 (21.4% Fib) over the next few days as investors hold a bearish outlook for the low-yielding currency. Over the next few hours of trading, we may see the pair make a run for 1.5505 (200-Day SMA), and a break above this level should lead the pair towards the 21.4% Fib over the remainder of the week. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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