EUR/CHF Line In The Sand Drawn On The Downside; Has The Market Drawn A Line On The Topside?

The EURCHF has remained contained after the BIS buying yesterday.   The 1.5000 level seems to remain the “line in the sand” on the downside for the SNB at least, despite the fact they have not mentioned a preferred target level for the pair.

If a floor is in place,what about the ceiling?  The 200 day moving average (green line in the chart above and below)  has been a good topside resistance level that the market has set.  Taking a longer term look at the pair in the chart below, the 200 day moving average has contained the topside more or less since August 2008.  There was one close above the level in December 2008 but that was reversed the next day.  On June 5th 2009 the price moved above the level on an intraday basis but was not able to maintain the momentum, and sold off.  The current level comes in at the 1.5170 level.

So not only is the line in the sand set on the downside by the SNB, the market price has put a line in the sand on the upside against the 200 day MA.  What line will eventually be crossed?  Be patient.  Look for clues.

Speaking of such, the hourly 100 bar moving average is currently moving sideways at the 1.5078 level.  This level, along with the 100 day moving average at currently at the 1.5070 level, may raise the floor up a bit for the short term trader.   I would expect buyers against these support levels.

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