The USDCHF has tumbled lower in trading today. The decline is near the largest 1-day fall for the year January 24 (-0.8503%)
SNB Jordan talked about the low CHF and how it may increase inflation. He also rattled the cages about intervention. Remember, the SNB surprised the market with a cut in interest rates this year. Is there some regret?
Swiss data also helped contribute to the rise in the CHF (fall in the USDCHF), as has a softer US dollar today. Technical breaks on the charts have also contributed to the downside momentum.
Technically the price has now moved below the 50% midpoint of the May trading range. That level comes in at 0.90724. Staying below that area is now the close risk for sellers.
Earlier today, the price broke below its 200-hour moving average, its 200 bar moving average on the 4-hour chart (at 0.9105), its 38.2% retracement of the major trading range and 0.90925, and the aforementioned 50% midpoint.
The price is stalling nearly 61.8% at 0.90524. The next target comes in near 0.9020 – 25 on further selling.
This article was written by Greg Michalowski at www.forexlive.com.
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