Today the SNB has officially pegged the Swiss Franc to the common European currency at 1.2.
The statement says that the bank strives to weaken the Swiss currency in order to secure the country’s economy against numerous risks.
The Swiss Franc (CHF) has lost a bit of its value against EUR and USD. At 8.25 GMT the EURCHF exchange rate was around 1,2022 (8.4% higher than the price seen during yesterday’s American session).
Moreover the bank is ready to buy foreign currency if needed. The SNB is sure that the Swiss Franc has been overvalued, thus creating deflation risks.
FOREX.
According to the Department of Masterforex-V trading system , USDCHF has overcome the MF pivot and sloping channel, thus forming a FZR of Daily against the major trend and completing wave C or a(C ) of the long-term downtrend. The rally may encounter resistance at 0,8848. However, it is too early to talk about an upward reversal until price breaks above the MF pivot and sloping channel (as shown below):
