FXStreet (Barranquilla) – It was read in today’s Live Analysis Room show regarding the SNB intervention: FXroom member Armand wrote in the chat room that “Switzerland can not fight entire world. They lost once and they will lose again.”
And it is happening. After a brief period of gains from 0.9337 following the SNB intervention, the USD/CHF found a selling interest at 0.9425 that sent the pair to the south to current 0.9250. 175 pips down and the USD/CHF it’s trading at 1-week low.
Earlier in the day, Swiss National Bank chief Thomas Jordan confirmed that the bank intervened in Forex markets on Monday as the Swiss Franc faced the risk of appreciation due to safe haven appeal following the Greece crisis outcome.
Currently, USD/CHF is trading at 0.9257, down 0.78% on the day, having posted a daily high at 0.9431 and low at 0.9244. USD/CHF spot is in oversold territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
USD/CHF Forecast
Yohay Elam from ForexCrunch anticipated the SNB move in the latest USD/CHF Forecast Poll: “SNB intervention or fear of such intervention could weigh on the franc.”
Regarding short term forecast, Richard Perry from Hantec sees “the outlook becoming increasingly neutral and lacking direction in the medium term.” He expects “trading to continue around the 0.9300/0.9350 pivot band.”
USD/CHF levels
If the pair manages to extend losses beyond 0.9250, it will find supports at 0.9220, 0.9200 and 0.9160. To the upside, resistances are at 0.9280, 0.9300 and 0.9325.
EUR/CHF back to breakeven
The EUR/CHF is trading above the 1.0400 level after retracing from intra-day highs of 1.0440 (also PP) and bouncing back from 1.0350. Currently, EUR/CHF is trading at 1.0422, up 0.01% on the day, having posted a daily high at 1.0443 and low at 1.0314.
The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish.
(Market News Provided by FXstreet)