EUR/CHF made steady gains to the intraday high of 1.0875 from 1.0790 (+85 pips) as the swiss franc weakened following the dovish comments from the Swiss National Bank Vice President, Fritz Zurbruegg. He said that the SNB will analyze the impact of the eurozone's quantitative easing, given the swiss franc is overvalued. At our monetary policy assessment in December, we will analyze all developments, both in Switzerland and abroad." (Zentralschweiz am Sonntag newspaper published on Sunday).
The swiss franc continued to weakend against the euro and the US dollar from Europe to the late NY session Monday combined with a short covering rebound as the market is short the euro from last week. The 30-minute chart shows a visible EUCHF selling path from 1.0895 on Oct. 22nd Thursday to 1.0755 Friday Oct 23rd. This level at 1.0870 is a 90% retracement back to 1.0895.
Corrections however, may be met will selling at the 1.0900 level for euro short players. The 14-day moving average looks toppish at 1.0880 from Oct. 21. The hourly chart shows a resistance formation at the 1.0895-1.0900 level. The 4-hour chart shows declining tops from 1.1040 (Sept 9) to 1.0990 (today).
Charts: WorldWideMarkets Alpha Trader