EUR/CHF downside pressure to spark further chatter about potential SNB intervention

Technical Analysis

Author: Justin Low | eurchf

EUR/CHF briefly hit fresh lows since July 2017 earlier

EUR/CHF D1 16-07
With the euro losing further ground today, it is putting EUR/CHF in a bit of a peculiar spot as price makes its approach towards the 1.1000 handle. For some context, that's roughly 1,000 pips from where the SNB would like the pair to trade towards i.e. before they removed the floor back in January 2015.

The technicals and fundamentals may be supportive towards further decline in the pair, but for now just be wary that the Swiss central bank may be seen coming in - verbally or physically - to try and stem the bleeding.

If price manages to hold a break below the support at 1.1057 later today, it could spell a slippery slope towards the 1.1000 handle next and I reckon that's potentially a level where the SNB may want to "smooth things out".

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