1 Dec 2014
EUR/CHF eases from 1.2040
FXStreet (Edinburgh) - The Swiss franc eased some ground vs. its European peer in early trade, lifting EUR/CHF to test session highs in the 1.2040 neighbourhood.
EUR/CHF boosted by the gold referendum
Yesterday’s “Save Our Swiss Gold” referendum rejected the measure forcing the Swiss central bank to increase its holdings of the precious metal to at least 20%, sparking some selling pressure on the CHF. The cross keeps a 20-pip range so far, at least managing to put further distance from the critical 1.2000 peg. “We do, however, expect the bounce in EUR/CHF to be short-lived as speculations of further ECB measures will likely return the heat on the SNB”, observed Lars Christensen, Chief Analyst at Danske Bank.
EUR/CHF relevant levels
At the moment the cross is advancing 0.08% at 1.2028 with the next resistance at 1.2040 (high Dec.1) ahead of 1.2061 (high Nov.4). On the flip side, a breakdown of 1.2009 (low Nov.19) would expose 1.2000 (SNB Target Sep.6 2011) and then 1.1994 (low Apr.5 2012).
EUR/CHF boosted by the gold referendum
Yesterday’s “Save Our Swiss Gold” referendum rejected the measure forcing the Swiss central bank to increase its holdings of the precious metal to at least 20%, sparking some selling pressure on the CHF. The cross keeps a 20-pip range so far, at least managing to put further distance from the critical 1.2000 peg. “We do, however, expect the bounce in EUR/CHF to be short-lived as speculations of further ECB measures will likely return the heat on the SNB”, observed Lars Christensen, Chief Analyst at Danske Bank.
EUR/CHF relevant levels
At the moment the cross is advancing 0.08% at 1.2028 with the next resistance at 1.2040 (high Dec.1) ahead of 1.2061 (high Nov.4). On the flip side, a breakdown of 1.2009 (low Nov.19) would expose 1.2000 (SNB Target Sep.6 2011) and then 1.1994 (low Apr.5 2012).