EUR/CHF Technical Analysis September 7, 2011

EUR/CHF skyrocketed on Tuesday as the Swiss National Bank has finally played its “nuclear option” in the currency markets. In a statement, the SNB said that it “can no longer tolerate the EUR/CHF cross at anything below 1.20 and that area in and of itself is still too low.” The SNB also mentioned that they were prepared to buy unlimited amounts of foreign currencies to fight this rise in the value of the Franc. Because of this, the game has changed in this pair and all XXX/CHF pairs in general. It appears that the buying of the Franc for steady profits has just come to an end. We need to see the 1.20 level hold for several days in order to buy.

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