Dmitri Lysenko
The ECB has recently resumed the purchases of risky eurozone bonds, which may present a range of problems for the SNB, especially when it comes to curbing the EURCHF exchange rate, Commerzbank experts report.
They say that the difference between the euro- and franc-denominated swaps has reached the all-time low. The chief currency strategist for Commerzbank says EURCHF would trade below 1.2 but for currency interventions.
The SNB will have to continue the game because a decline below 1.2 will result in serious consequences.
According to , the Swiss Franc keeps strengthening against the US Dollar. The experts report that USDCHF is forming a downswing represented by wave C of level Daily. Sub-wave А(С)/С is about to be completed.
A further rally will take place as long as the price breaks below 0.9547. If this is the case, the price will probably meet support around 0.9476/60, 0.9449/38.. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 0.9633 (as shown below).
Dmitri Lysenko
