Expect the Swiss Franc to Get Softer
The Swiss National Bank appears to be at it again. After days of drifting listlessly above its new 1.20 peg to the euro, the Swiss franc went into a free fall at 8:30 this morning. The action began just after the release of housing starts and building permits in the U.S., which occupied the attention of most traders at that moment, making the action in the Swissy easy to miss.
There is nothing quite like the chart of a central-bank-manipulated currency. The four-hour chart of EURCHF leaves the distinct impression that the lower halves of some of the candles have gone missing. The initial announcement of the peg to the euro at 1.20 occurs on the left side of the four-hour chart; now the rumor is spreading that the SNB is raising the peg to 1.25. I have no idea if that is the case, but I'm still bullish EURCHF, regardless of the reason behind today's move....346 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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