SNB intervention to stabilize the CHF temporary
The SNB intervened to stabilize the currency after the Greek weekend news sent the price sharply lower. The EURCHF moved up about 110 or so pips, ran into the 100 and 200 hour MAs (see blue and green lines in the chart below) and has retreated back lower. The pair is back below the series of swing lows going back to June2/3 at the 1.0395 to 1.04086. If the price is to go higher, the buyers (including the SNB) need to see the price get back above and stay above this level.
The good news for the SNB is the lows from the Greece news, were not able to head below the extreme lows reached in May at the 1.0279. The low today extended to 1.0305 before rebounding (this was also near the lows from May 7th - not shown). .
The low price for the EURCHF - discounting the volatile January when the SNB depegged the pair - has come in at 1.0233 (see daily chart below). The high price has peaked at 1.08077. The midpoint comes in at 1.05204. In June, the price for the pair did extend above that midpoint on a number of different occasions, with 2 closes above the level. However, the bias for the pair remains more negative overall. The intervention today is indication the SNB is getting a bit nervous about the level, but the markets selling is indicative of a demand for the CHF in these times of uncertainty.
