Amundi Asset Management with EUR/CHF longs

The largest fund in Europe started to bet against the Swiss franc.

The price reached 1.10 today, with the head of the FX department in the background saying the real weakening of the Swiss franc has already begun. Frank is already too expensive, considering how low the interest rate is in Switzerland, and SNB is not very happy about that. We have been warning for some time that the bank could also intervene in the FX markets by weakening the franc exchange rate.

That is why the fund is also selling francs. They believe that if the currency pair reaches parity, the bank will intervene at that time. The impulse today is pronounced strong, absorbing the previous candle with a whipping swallow. Above we have resistance at 1.10556, which if broken, the price will look for an opportunity to rise to cross the diagonals in the zone at 1.10833.

 Trader Martin Nikolov

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