EUR/AUD at 23 Year Low, EUR/CHF Floor Under Huge

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While the interest rate cut by the ECB to 0.75% was widely expected, the elimination of the deposit rate to 0% was a shocker that sent the euro plunging across the board. 

Apart from the near 100 pip plunge in EUR/USD, it’s important to note two interesting pairs – one that moved to historic lows and one that could explode.

Update: Follow the live blog of the ECB press conference.

EUR/AUD is trading at 1.2078, below lows seen earlier in the year. It is now in the lowest levels since February 1989 (taking the Deutschmark into consideration).

EUR AUD 23 Year Low July 5 2012

EUR AUD 23 Year Low – Monthly Chart – Click image to enlarge

EUR/CHF is guarded by the Swiss National Bank at 1.20. The SNB reiterated its stance from September 2011 to buy “unlimited amounts of foreign currency”. But how long can it hold on?

There are many speculators who are waiting for the levee to break. If 1.20 breaks, it will be a fast ride down, of hundreds of pips.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.