EUR/CHF Drops After Swiss Government Announcement
FXstreet.com reported on 18 September 2012 that the EUR/CHF pair broke lower following the Swiss government announcement that it was cutting its economic forecast for 2012 and 2013. As a result of the announcement, the pair quickly sold off, falling close to 60 pips. Price found support at 1.2094 before slightly retracing to trading at 1.2113.
Among the other factors weighing on the euro and, by implication, on the EUR/CHF currency pair, was a new survey showing that German investor sentiment remained negative, as reported by Bloomberg. As a result, the common European currency declined against most major currencies.
According to Bloomberg data, the Swiss franc strengthened for a second day versus the euro, gaining 0.3 percent to 1.2127. Uncertainty as to whether Spain will delay seeking a bailout to resolve its financial problems also contributed to the weakening of the euro and, respectively, for the downward movement of the EUR/CHF pair. The franc, however, was little changed against the dollar, at 92.74 centimes.
According to Forex Ticket, the EUR/CHF pair will largely range today between 1.2185 and 1.208 with extended support and resistance to be found at 1.205 and 1.22.