Swiss National Bank President Thomas said on Monday in Zurich that the Swiss franc is an indispensable part of monetary policy to limit risks to the economy and that the franc remains a highly valued currency. The SNB seems to remain on alert for renewed problems in the euro zone but it is now two years since the SNB stopped the franc going any higher than 1.20 to the euro to stem any threat of deflation and recession.
The Euro/Swiss franc cross is now testing the 200-day simple moving average for the fifth time in daily trading since April, currently at 1.2300. Though it has crossed below to around 1.2280, the euro has not been able to break much below the 200-day SMA in any intraday test before it finds support and moves higher.
While the Swiss National Bank may be keeping the 1.20 floor by buying euros or selling francs, they are not keeping the floor at any particular technical level. That the market is doing on its own. Which is perhaps the best indicator of many that for now the euro is finding its feet. And not just against the Swiss franc.