SNBs Jordan is on the wires saying:
- Price stability does not happen automatically.
- We are seeing no wage spiral in Switzerland
- Swiss inflation is currently above the level of price stability and may stay raised for the time being
- focus on the SNB is on limiting second-round effects of inflation
- cannot rule out that SNB will have to raise rates further
- central bank is ready to be active in currency markets when necessary
The EURCHF has seen the price move down today, helped lower by the EURUSD’s fall. Looking at the hourly chart, the pair was consolidating just below the 100 hour MA in the European session (see blue line on the chart below). Seller leaned near the 100 hour MA and kept a lid on the pair.
The fall in the EURCHF – on the overall EUR selling through the Lagarde press conference – saw the price extend below the low from Tuesday’s trade at 0.99416, but fall short of the 200 day moving average down at 0.99213 (see lower green line on the chart above). The low price for the day reach 0.9934 before bouncing back higher. The current price trades at 0.9960.
On the top side, traders will be eyeing the 0.99699 level. That level is home to the 50% midpoint of the move up from the January 19 low. Move back above that level would give the dip buyers some added confidence.
On the downside move back below 0.9935 – 0.9941 swing area would have traders looking toward the 200 day moving average of 0.99213. He moved back below the 200 day moving average would increase the bearish bias (lower green line on the chart above).