EUR/CHF has returned to the base of its near-term trading range. The base of the hourly channel is now close to the 1.2000 level (1.2015). Further weakness is now anticipated to re-test the key 1.2000 region which will act as a test of the resolve of the SNB to maintain this verbal floor.
The negative bias is principally driven by the longer-term failure to break over the 50 week moving average, which suggests that the longer-term down-trend is not over.
Negative rates available on short-dated German bonds is an ever present warning that all may not be well in the European banking system.
Daily Technical Report
