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22 May 2013
Forex: EUR/CHF eases off highs to 1.2528/32
FXstreet.com (Barcelona) - The EUR/CHF has been unusually active this week, edging higher during European trading, though operating off its session highs at 1.2565 in recent minutes.
At the time of writing, the pair is now settling at 1.2528/32, still up a tepid +0.07% Wednesday. The EUR/CHF will face calculated resistance at 1.2560, then 1.2587, and finally 1.2642. On the decline, a movement below 1.2478 will initiate supportive structures at 1.2423 ahead of 1.2398, notes the Mataf.net analyst team.
According to the UBS Research Team, “We think the SNB will not be willing to start selling its foreign exchange reserves anytime soon even if the EUR/CHF and USDCHF continue to rise. In particular the SNB will not want to be seen 'fine-tuning' exchange rates or cause the franc to start rebounding again. That keeps us bearish on the currency. We expect the EUR/CHF to reach 1.27 over the next three months as sentiment in financial markets keeps improving.” they add.
At the time of writing, the pair is now settling at 1.2528/32, still up a tepid +0.07% Wednesday. The EUR/CHF will face calculated resistance at 1.2560, then 1.2587, and finally 1.2642. On the decline, a movement below 1.2478 will initiate supportive structures at 1.2423 ahead of 1.2398, notes the Mataf.net analyst team.
According to the UBS Research Team, “We think the SNB will not be willing to start selling its foreign exchange reserves anytime soon even if the EUR/CHF and USDCHF continue to rise. In particular the SNB will not want to be seen 'fine-tuning' exchange rates or cause the franc to start rebounding again. That keeps us bearish on the currency. We expect the EUR/CHF to reach 1.27 over the next three months as sentiment in financial markets keeps improving.” they add.