24 Jun 2013
EUR/CHF eyes June lows
FXstreet.com (London) - EUR/CHF has continued to lose ground in light of SNB sticking to its game plan, and the dollar is outperforming across the board.
EUR/CHF could become a concern, especially with the economy’s export market behaving sluggishly in the EZ. In terms of the CHF cap, Melinda Burges at RBS said the recent comments from Jordan and Danthine suggest that they continue to view the CHF as overvalued. She continued to say a higher CHF floor is an option but the risk is that the move could fuel a fresh test of the SNB’s resolve, resulting in renewed FX reserve accumulation. While the current cap seems to be supporting the economy, the SNB will likely to be reluctant to adjust the level.
EUR/CHF riding support
On the weekly chart, EUR/CHF is meeting the support line with momentum slowing ahead of 1.2230 and EMA50. However, shorter term readings are bearish with RSI at 14, trading below the pivot point. June lows are in sight and closes below could bring in the psychological level 1.2200 at risk for break out to test January lows again.
EUR/CHF could become a concern, especially with the economy’s export market behaving sluggishly in the EZ. In terms of the CHF cap, Melinda Burges at RBS said the recent comments from Jordan and Danthine suggest that they continue to view the CHF as overvalued. She continued to say a higher CHF floor is an option but the risk is that the move could fuel a fresh test of the SNB’s resolve, resulting in renewed FX reserve accumulation. While the current cap seems to be supporting the economy, the SNB will likely to be reluctant to adjust the level.
EUR/CHF riding support
On the weekly chart, EUR/CHF is meeting the support line with momentum slowing ahead of 1.2230 and EMA50. However, shorter term readings are bearish with RSI at 14, trading below the pivot point. June lows are in sight and closes below could bring in the psychological level 1.2200 at risk for break out to test January lows again.