Last week, the SNB increased its currency reserves by ₣1.3bn. That is a major slowdown from ₣10-15bn a week. According to UBS, there are 3 reasons for the slowdown:
· Firstly, analysts and investors grew more confident in the SNB and reconsidered their forecasts.
· Secondly, Mario Draghi’s recent statement eased the pressure on the Euro currency.
· And finally, summer is usually the time of low-volume trading, which allowed the SNB to allocate less substantial funds for its activities.
According to UBS, EURCHF is expected to keep trading around 1.2.
According to , the Swiss Franc keeps retracing against the US Dollar. The experts report that USDCHF has completed wave А/B of level H4 (a downswing) and is currently forming an upswing represented by wave А/В of level H4.
A further downswing will take place if the price breaks below 0.9696. In this case, the price will probably meet support around the bottom of the MF sloping channel and 0.9655. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above the 0.9809 high (as shown below). If this is the case, the price will start forming a big-scale upswing represented by wave A/B of Daily.
