And moves to within 100 pips of the SNB depeg level of 1.2000
Way back in January 2015, the SNB surprised the market and pulled the rug out of the pegging of the EURCHF at 1.2000 level. The price plunged (there are numerous lows). Three+ years later the price traded within 70 pips of the 1.2000 level. The high today reached 1.19307.
Looking at the weekly chart above, the pair is testing the underside of a broken trend line at the day highs. That line comes in at 1.1929 - just below the high for the day at 1.19307. A move above opens the door for that 1.2000 level where I would expect sellers to line up simply for old times sake. Who knows, maybe someone who was long back in the early days of 2015, will breathe a sigh of relief and square up with no gain and no loss ; )
Drilling to the hourly chart below, the pair formed a trend line and based at that trend line earlier today (see blue circles).
That run higher initially stalled at a topside trend line (see red circles 3 and 4 in chart below) before breaking higher.
The acceleration of the move higher now has the underside of that trend line at 1.1911 and is the close risk for longs. Below that the 1.1890-1.1900 will be eyed as support. The lower trend line and the 38.2-50% of the last run higher, are in that area. A move below those levels take some of the "bull" out of the run higher today.
