The SNBs Jordan is speaking and says:
- Lower inflation pressure allowed them to lower interest rates
- The bank looks at the exchange rate closely and intervenes in Forex when necessary
- SNB has no set goal for Franc rate
- The bank has reduced the size of the balance sheet which has allowed to CB to tackle inflation.
Looking at the weekly chart of the EURCHF below, the price is trading back above its 100-week MA at 0.9750. Last week, the price moved above the 100-week MA, but could not sustain momentum and closed back below that MA level. This week the price has extended to the highest level since June 2023. The high from June 18 reached 0.9841. The high today reached 0.9819.
The
Staying above the 100-week MA now will keep the buyers in control – at least in the short term. There is room to roam with 38.2% of the last leg lower from the 2021 high to the end of 2023 low as a minimum target IF the buyers are to show they are intent on pushing the upside storyline. That level comes in at 0.9968.
There is room to roam and move higher in this pair with the 100 week MA the risk now.
This article was written by Greg Michalowski at www.forexlive.com. Source