The USD/CHF pair clocked a daily high of 1.0040 with markets blaming a possible Swiss National Bank (SNB) intervention amid EUR fall ahead of tomorrow’s ECB rate review.
Is CHF tracking EUR lower?
The drop in CHF could also be due to markets offering the currency in anticipation of SNB retaliation if the ECB comes out with a big bazooka tomorrow. SNB’s Jordan did acknowledge last week that ECB action do matter for SNB.
The pair clocked a low of 0.9944 before markets began offering CHF along with EUR. However, the spike above 1.10 is being blamed on SNB intervention.
USD/CHF Technical Levels
The spot could test major hurdle at 1.0124 (Jan 5 high) if it manages to chew through offers around the immediate resistance of 1.0040. On the other hand, a break below 0.9981 (50-DMA) could shift risk in favor of a drop to daily low of 0.9944.
(Market News Provided by FXstreet)