SNB Jordan says CHF still significantly overvalued
The EURCHF is trading at the highest level since the de-peg. SNBs Jordan is on wires saying that the CHF is still overvalued and that negative rate to have corrective effect on the CHF value.
Looking at the hourly chart the price today has been able to squeeze above the February 5 high at 1.06403. The move higher on his comments has taken the price to a high of 1.06675. With the last few bars closing above the Feb 5th high, traders will likely want to see the price now remain above that level (see red horizontal line). Stay above and the buyers are happy and excited about the break to new highs. Move below and the buyers get frustrated from the lack of momentum on the break. It is the line in the sand.