FXStreet (Mumbai) – The USD/CHF just clocked a fresh five year high of 1.0328 despite the absence of a fresh fundamental trigger, leading to speculation that the Swiss National Bank (SNB) may have intervened in the markets.
SNB active ahead of the ECB?
The SNB could be active in anticipation of the EUR weakness following the next week’s ECB meeting. Earlier this week, the SNB’s Jordan was on the wires stating that the CHF is overvalued (against the EUR). The overvaluation is at the risk of being extended if the ECB surprises markets with aggressive easing next week.
Thus, the drop in the CHF appears due to SNB’s invisible hand. At the moment, the pair is trading around 1.0311 levels.
USD/CHF Technical Levels
The immediate resistance is seen at 1.0369 (Dec 2008 low), above which the gains could be extended to 1.0590 (June 2009 low). On the other side, 1.0240 (Jan 2015 high) could offer support, under which the losses could be extended to 1.0183 (hourly 200-MA).
(Market News Provided by FXstreet)