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Investors still buying CHF despite intervention threat – Growth Aces

FXStreet (Barcelona) - The Growth Aces Research Team shares the comments of SNB chairman on Forex intervention, and further give the trade setup and key levels for USD/CHF.

Key Quotes

“The chairman of the Swiss National Bank Thomas Jordan said: “As recent developments show, the Swiss franc may strengthen temporarily in response to the current phase of increased uncertainty surrounding the Greek debt problem.” He added: “We will remain active in the foreign exchange market as necessary in order to influence monetary conditions”.”

“Central bank sees the franc as "significantly overvalued" and expects a weakening over time.”

“Investors are not afraid of the possibility of deeper negative rates in Switzerland or SNB interventions and the CHF continued to appreciate today despite Jordan’s comments.”

“We have lowered our sell order on the USD/CHF to 0.9600, but the strategy is quite risky due to possible interventions.”

“USD/CHF: sell at 0.9600, if filled - target 0.9365, stop-loss 0.9700, risk factor ***”

“Resistance: 0.9595 (100-dma), 0.9614 (10-dma), 0.9718 (high Apr 23)”

“Support: 0.9500 (psychological level), 0.9482 (low Apr 3), 0.9447 (low Feb 27)”

EUR/USD downtrend still in play, might see 1.04 over 12M – Rabobank

Despite EUR/USD having seen higher levels since morning, the pair still remains trapped in a sideways range, notes Jane Foley, Senior Currency Strategist at Rabobank, and further forecasts the pair at 1.04, over a 12month view.
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June Fed hike remains a possibility – ING

According to the Research Team at ING, a data bounce in US along with signs of bottoming inflation might keep June Fed hike still on the cards.
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