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A reader of our blog informed me that the EURUSD tested the 200 week moving average at the 1.3857 level.  The low for the day reached 1.3862 and the channel trendline we have been following came in at 1.3860.

As a result, the low may be in place for the day. Look for buyers on dips now, with stops below the 1.3858 level.

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The EURCHF has also soared higher moving above the 100 and 200 hour MAs at the 1.4709/18 levels.  Look for support against these levels now.  A move below 1.4698 would not be welcomed.

Looking at the longer term chart,the price reached a low at 1.4631 today.  If you recall the 1.5000 level was the old floor the SNB had said was the point of tolerance. Then comments from officials opened the window for an orderly decline in the pair as global growth started to increase.

Now it seems a new floor may be in place for the pair (1.4600 area) or so it seems.

Putting the action in perspective however, shows that the reaction, although sudden is still fairly muted.   Comparing the move higher to other intervention effforts makes this move look like a blip on the chart.  The market may be rationalizing that the move is on month end, it was also done by the BIS on behalf of another central bank who may be taking a profit at month end, not the Swiss National Bank, and as a result it may be just a technical move.   We will see.  It certainly did add some excitement to the early Friday afternoon.

The EURCHF has also soared higher moving above the 100 and 200 hour MAs at the 1.4709/18 levels.  Look for support against these levels now.  A move below 1.4698 would not be welcomed.

Looking at the longer term chart,the price reached a low at 1.4631 today.  If you recall the 1.5000 level was the old floor the SNB had said was the point of tolerance. Then comments from officials opened the window for an orderly decline in the pair as global growth started to increase.

Now it seems a new floor may be in place for the pair (1.4600 area) or so it seems.

Putting the action in perspective however, shows that the reaction, although sudden is still fairly muted.   Comparing the move higher to other intervention effforts makes this move look like a blip on the chart.  The market may be rationalizing that the move is on month end, it was also done by the BIS on behalf of another central bank who may be taking a profit at month end, not the Swiss National Bank, and as a result it may be just a technical move.   We will see.  It certainly did add some excitement to the early Friday afternoon.

The EURCHF has also soared higher moving above the 100 and 200 hour MAs at the 1.4709/18 levels.  Look for support against these levels now.  A move below 1.4698 would not be welcomed.

Looking at the longer term chart,the price reached a low at 1.4631 today.  If you recall the 1.5000 level was the old floor the SNB had said was the point of tolerance. Then comments from officials opened the window for an orderly decline in the pair as global growth started to increase.

Now it seems a new floor may be in place for the pair (1.4600 area) or so it seems.

Putting the action in perspective however, shows that the reaction, although sudden is still fairly muted.   Comparing the move higher to other intervention effforts makes this move look like a blip on the chart.  The market may be rationalizing that the move is on month end, it was also done by the BIS on behalf of another central bank who may be taking a profit at month end, not the Swiss National Bank, and as a result it may be just a technical move.   We will see.  It certainly did add some excitement to the early Friday afternoon.