FXStreet (Mumbai) – The SNB intervention countered the safe haven bids in CHF, thereby helping the EUR/CHF pair hit a session high of 1.439 before dropping back below 1.04 levels.
Rejected at 50-DMA
The pair clocked a high of 1.0439 but failed to sustain and fell back below the 50-DMA located at 1.0422. The CHF had strengthened to 1.0310 earlier today open safe haven bids due to Greek crisis. However, the gains were pared mainly on account of FX intervention, officially confirmed by the SNB president Jordan.
Ahead in the day, the Greece related news flow should continue to dominate the EUR/CHF pair. I remains to be seen if the safe haven bids on the CHF return ahead of the June 30 Greek deadline and the July 5 referendum.
EUR/CHF Technical Levels
The pair currently trades at 1.0394. The immediate resistance is seen at 1.0422 (50-DMA), above which gains could be extended to 1.0488 (100-DMA). On the flip side, a break below 1.0382 (May 14 low), under which losses could be extended to 1.0346 (May 5 low).
(Market News Provided by FXstreet)