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SNB Sets a Target of 1.2000 Against the Euro, Sustainable ?
The SNB (Swiss National Bank) made an unexpected announcement this morning by indicating that it will set an exchange rate of 1.2000 against the Euro. The announcement triggered the EUR/CHF to move 1000+ pips, from the 1.1095 to the 1.2170 high. The question remains, will the SNB move be successful, during a time of investors shifting their assets to safe-haven currencies ?
The Euro has been bullish against the Swiss Franc, since the Swiss National Bank decided to ease its overvalued currency. The SNB intervention took place on Aug.3rd.2011, but we didn’t notice any progress till Aug.11th.2011 … when the currency pair surged 650+ pips. Intraday bias for the EUR/CHF remains on the upside, as long as the 1.0685 minor support line is not broken.
Swiss Franc Flirting With All-time High Against the Greenback
Welcome to another day of FX trading! In today’s fx feature is the weekly chart of the USDCHF. As you can see, the pair has been losing a lot ground for several weeks now. After hitting a high of 1.1731 last May 31, it has slid since then. In fact, it had already touched the parity level early today.
Welcome to another week of forex trading my friends! Today, I present to you an updated daily chart of the USDCHF pair. From my post about it exactly a month ago back in May 21, I mentioned that the USD is bound to give up some of its gains back to the Swiss franc after the pair had reached a high of 1.1731 in June 1.
The USD/CHF broke out of an inverted head and shoulders formation during the start of May. Since breaking the 1.0900 resistance, the pair has continued its ascent. It seems, though, that the Swiss Franc is bound to rally against the greenback any time soon given the present overbought conditions. Moreover, based on the Elliot Wave Theory (EWT), the pair could be starting to mark its fourth wave.
Investors nowadays are so bearish on the EUR that whenever they think about it all that comes to mind is SELL. But guess what?! The euro actually had couple of nice runs these past two days. After marking a new two-year low of 1.21445 last May 18 against the US dollar, the fiber (EURUSD) rose from the dead and rallied back to the 1.2600 region.