EUR/CHF has been a pain point for many traders since the SNB removed the floor under 1.20. The pair drifted around and suffered occasional interventions. It is now working its way to that level without any help from the central bank. What’s nexT?
Here is their view, courtesy of eFXdata:
BTMU Research discusses EUR/CHF outlook and notes that the renewed weakness of CHF is garnering more market attention as EUR/CHF moves to within touching distance of the 1.2000-level for the first time since the SNB dropped their floor at the start of 2015.
“The recent weakening of the traditional safe haven currencies of the yen and Swiss franc remains one of the key trends in the foreign exchange market in the near-term.
Overall, the developments are likely to keep the Swiss franc under pressure in the near-term with EUR/CHF set to test and a likely breach of the 1.2000-level now imminent,” BTMU argues.