A EUR/CHF close at the current 1.2135 level would be the lowest since early January.
A dovish statement for the ECB on Thursday could put pressure on the Swiss National Bank to defend the EUR/CHF floor.
It’s no surprise that the latest round of declines in EUR/CHF came after March 15 when Cyprus announced a deposit levy. Money is pouring into Switzerland in search of a safe haven.
There is no realistic shot of the 1.20 floor breaking so the only trades are to buy or head to the sidelines. Downside risk from these levels is limited but a spike lower (maybe a buy order at 1.2090) would be a bargain-basement deal.
