Forex Trading: EUR/CHF And USD/CHF Move Sharply Higher

Dealers noted the BIS/SNB was in this morning buying EURCHF and USDCHF.  The EURCHF soared to a high of 1.5285 from an overnight low of  1.5010 - just short of the key psychological level at 1.5000 and 1 pip away from the 50% retracement level of 1.5011.  The USDCHF had an overnight low of 1.6031. The action moved the pair up to a high of 1.0909

From a technical perspective the move higher pushed the EURCHF above the 100 and 200 day moving averages at the 1.5073 and the 1.5159 levels respectively (blue and green line in the chart above).  There is retracement support at the 1.5180 level which is the 38.2% retracement of the days range.  I would expect buyers against this level. Below that is the 1.5159 level (200 day MA).

For the USDCHF, the 38.2% retracement of the move higher today comes in at te 1.0803. This is also where the 100 hour moving average is located.  As a result, the level should be a good support level for the pair. A move below finds additional support at hte 1.0770 level (50% retracement).

On the topside the top trendline comes in at the 1.0926 level. On the sharp move higher the pair stopped short of this level, reaching a high of 1.0909 level.  A break above this level will likely attract further buying interest.

The chance exists for additional intervention throughout the day.

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