Here we go again, EUR/CHF lower as global stocks take a tumble
With risk aversion being ratcheted up and global stocks tumbling, it’s no surprise to see the EUR/CHF cross on the move. It’s presently down at 1.5053/58 having started out in Europe up around 1.5085, as swissy’s safe haven premium comes into play.
The possibility of further ECB quantitative ease is also weighing on the cross.
Now having said that, we’ve seen many times that the 1.5000/50 area has provided rock solid support, and the cross has found it hard to sustain a move below 1.5050 for very long. Fear of renewed SNB intervention is obviously a big inhibiting factor.
If we dip below 1.5050 again, it’ll be interesting to see how long it takes for good demand to resurface. Probably not too long, if the recent past has any bearing.
Technical support of note lies down at 1.5010/15. One has to think there could well be some sell-stops nestled just below 1.5010.