How long can the franc remain lower than the euro in forex trading?
Speculation that the Swiss National Bank interfered in the currency market to keep the franc weak continues, and now the question is how long the interference will keep EUR/CHF higher.
The move by the SNB prompted a dramatic gain for the euro in forex trading against the Swiss franc. Even though things even out and some of the gains were pared, the franc still remains in a position of weakness — as desired by the SNB. But, how long will it last? GFT’s Boris Schlossberg explores the merits of the case in FX360:
Therefore, while it is never wise to stand in front of central bank at the moment of intervention it may nevertheless be interesting to consider fading the move once the initial burst has taken place. For now 1.5400 acts as the key resistance level for the pair and as long as that figure holds the bias in EUR/CHF
remains to the downside, and the pair may well retest 1.5000 support in the next several weeks if sentiment towards EZ finances turns negative once again.
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