USD/CHF Moves Sharply Lower, But EUR/CHF Holds Relatively Steady

The USD/CHF has moved sharply lower today as the dollar comes under pressure.  The pair has broken the 100 hour moving average (at 1.1817).  It has broken the 200 hour MA (at 1.1706).  The pair has nearly retraced the entire move higher when the Swiss National Bank said they would buy currencies against the CHF.

Should we expect SNB intervention?

The SNB was probably more concerned about the level of the CHF versus the EURO.   Looking at that currency pairs chart, the gains from from last week have been largely maintained (see chart below). Should the EUR/CHF come under pressure, I would expect some chatter from the SNB to limit the declines.  However, so far it is contained.

Nevertheless, the USD/CHF should slow the decline as caution most likely enters traders’ minds.

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