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5 Feb 2015
EUR/CHF soars amid intervention talks
FXStreet (Córdoba) - EUR/CHF rose almost 200 pips from the lows and peaked at 1.0641, hitting a fresh high since January 15, when the Swiss National Bank shocked markets by abandoning the 1.20 peg. Afterwards the pair pulled back but it was holding above 1.0600 having the best performance in a week and completed recovered from yesterday’s losses.
The Swiss franc weakened across the board during the last hours on speculations about the SNB buying the EUR/USD pair. “EURCHF has little liquidity in its own right so it’s only natural that the SNB, or indeed anyone, should use the two core pairs to get their amounts done,” explained Mike Paterson from ForexLive.
The EUR/CHF so far failed to make a clear break above previous highs but remains near the top, holding a bullish tone. The key resistance to the upside is located around 1.0640/50 while to the downside the important short term support could be 1.0460/65 (Feb 03, 04, 05 lows).
The Swiss franc weakened across the board during the last hours on speculations about the SNB buying the EUR/USD pair. “EURCHF has little liquidity in its own right so it’s only natural that the SNB, or indeed anyone, should use the two core pairs to get their amounts done,” explained Mike Paterson from ForexLive.
The EUR/CHF so far failed to make a clear break above previous highs but remains near the top, holding a bullish tone. The key resistance to the upside is located around 1.0640/50 while to the downside the important short term support could be 1.0460/65 (Feb 03, 04, 05 lows).