Well, it finally came. Such is the negative bias toward the euro at present, the swissy bulls finally managed a breach of the 1.5180/00 psychological area. It was psychological in as much as that’s where a fair few thought the SNB might come in and buy the cross.
When they didn’t turn up stop loss sell-orders lined up at 1.5175 were triggered, sending the pairing to a 1.5128 low, before recovery.
Swissy has also been given a boost from the increased risk aversion today, as its’ safe haven premium comes into play.
We’re presently at 1.5150 and even given the euro’s plight, the safe haven gains, and even having breached 1.5180 without any sign of the SNB, the progress lower is likely to be pretty laboured. At the end of the day the SNB can turn up at any juncture. And even if they don’t there’s likely to be rumours of such as we head lower, just to keep the swissy bulls on their toes (or is it hooves.)
Technical supports now lie at 1.5125 and then 1.5080, resistances at 1.5220 and 1.5240.
