EUR/CHF And USD/CHF Move Higher Again On Intervention Rumors

There was talk again of intervention in the CHF complex this morning. This increased led to another spike higher in the CHF pairs.

The move higher still kept the USDCHF below the 1.1030 level which corresponds to the 38.2% retracement level of the move from the high of 1.1741 on April 20th to the low of 1.0590 set on June 2nd.   A move above this level is needed to move the pair to higher levels.   On the downside the 1.1075 level should provide the support for the pair.  This level corresponds with earlier high levels for the pair.  I would think traders would be wary to sell the pair too low.  Note yesterday there were reports of a 2nd round of intervention at around 12:10 PM NYT.  I would expect more action.

Like the USDCHF, the EURCHF saw the pair move up toward the high from yesterday at the 1.5380 level. The high today reached 1.5377.  Since that time the price has moved back down toward the midpoint of the days range at the 1.5317 level.   The close yesterday was 1.5290.  I would think that a move below the closing level from yesterday would not be a direction that the SNB would desire.  However, sometimes it is hard to fight the will of the market.

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