Rally in Euro Takes Heat of Swiss National Bank

The rally in the Euro took some of the pressure off the Swiss National Bank to intervene in the market. The SNB has issued a warning that it stands poised to weaken its own currency if it gets to much higher.

The rally in the Euro took some of the pressure off the Swiss National Bank to intervene in the market. The SNB has issued a warning that it stands poised to weaken its own currency if it gets to much higher. The purpose of the intervention is to make Swiss goods cheaper and to counter the effects of deflation. 

Technically, the USD CHF indicates the market is in an uptrend on the daily chart but could be overbought because of the fast rally last Friday. Although we may see a short-term decline, there is no danger of a change in trend to down unless 1.1200 is violated.