EUR/CHF tests lows near 1.0860

By FXStreet FXStreet (Edinburgh) – The common currency is now losing some ground vs. the Swiss franc, relegating EUR/CHF to challenge session lows in the 1.0860 area.

EUR/CHF upside capped near 1.0890

The better tone in EUR following the FOMC minutes on Wednesday has allowed the cross to print fresh highs near 1.0890 during the Asian trading hours, although the bullish attempt have run out of vigour and triggered the current leg lower.

In the meantime, the cross is advancing for the second consecutive week following increasing CHF-weakness as of late, mainly via a strong upside bias in USD/CHF.

Furthermore, recent comments by SNB’s T.Jordan have reiterated the Alpine central bank remains vigilant on any ECB move, leaving at the same time intact the likeliness of FX intervention in case of ‘unwelcomed’ franc appreciation.

EUR/CHF levels to consider

At the moment the cross is gaining 0.07% at 1.0869 and a surpass of 1.0930 (high Oct.30) would aim for 1.0986 (high Oct.2) and then 1.1049 (high Sep.11). On the other hand, the immediate support aligns at 1.0783 (100-day sma) followed by 1.0703 (low Aug.20) and finally 1.0501 (23.6% Fibo of 0.8695-1.1049).
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Source:: FX Street