USDCHF slices through the 200 and 100 day MA like a hot knife through butter
The EURCHF was supposed to stop ahead of 1.0800. It did not. SNB Jordan was out saying the CHF was overvalued. Tell that to a market is getting nervous. Where does the money go? Into the CHF today.
Technically, the EURCHF is testing swing lows from December and June 2016 - well breaking through as I type.... If you ignore the Brexit tumble, the Dec 2015 low at 1.0755 is the next stop.
Meanwhile the USDCHF sliced below the 200 and 100 day MA like a hot knife through butter. There was a test after the break that held. That was the message traders needed. The price has since moved below the October 5 low at 0.9736.
We are seeing a modest bounce, but looking at the chart below, there also has been a lot of technical damage done today. Traders will likely lean against the daily MAs on a recovery At 0.9768 and 0.9778. Stay below and the sellers remain in control. Move above and traders can start talking about a recovery.
Be careful.