The SNB (Swiss National Bank) gave the Forex market another 300-pip jolt (USD/CHF) today. The message to traders: "This is the way to test a Central Bank's resolve". When trader's sent the USD/CHF and EUR/CHF to the floor yesterday (1.0630 for the USD/CHF and 1.5011 for the EUR/CHF), the SNB intervened massively, selling off Swiss Francs and buying Euros and greenbacks, reminiscent of their March action.
There it goes. Despite the SNB's repeated statements that they do not have established levels where they want the Franc to stay, their actions just did not reflect that.
If I had been awake last night, I would have caught this steamroller from the get go.
Lesson learned here: Watch those levels on the Swiss Franc pairs and if they go anywhere near these lows, get ready to go LONG.
There it goes. Despite the SNB's repeated statements that they do not have established levels where they want the Franc to stay, their actions just did not reflect that.
If I had been awake last night, I would have caught this steamroller from the get go.
Lesson learned here: Watch those levels on the Swiss Franc pairs and if they go anywhere near these lows, get ready to go LONG.
USD/CHF
Hourly Chart (as of 6-25-2009)
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