The EURCHF has had an up and down day today, rallying in the early European session but falling off despite weaker than expected Producer Price data (-0.2% vs 0.0% estimate)
The fall did end up finding support at a key technical support area in the London afternoon/NY morning session.
Looking at the hourly chart below, the price found support buyers against the upward sloping trend line, 38.2% of the last trend leg higher, and the 100 hour MA (blue line in the chart below) at the 1.2089-93 area..
The SNB meets on Thursday (along with all the other events going on that day), and there will be competition on “what is most important” from a fundamental perspective. It will be interesting to see if the SNB takes a proactive role and at least reminds traders that they have tools available and will use them if need be. The market is not expecting any action to lower rates to below 0% to counteract the easing by the ECB but they did mention it last week. It would make sense that they reiterate those comments.
Whether the market listens is another story, but looking at the chart below, the close risk can be defined against the aforementioned support levels. The buyers – above this support area – remain in control.
EURCHF longs/buyers remain in control.
