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15 Jan 2015
EUR/USD back above 1.1700 after SNB-induced collapse
FXStreet (Mumbai) - EUR/USD recovered swiftly after crashing to fresh multi-year lows on news that the Swiss National Bank (SNB) is doing away with the minimum exchange rate of CHF 1.20 per euro.
Currently, the EUR/USD traded at 1.1742, -down 0.41% on the day, having collapsed to fresh multi-year lows of 1.1580 immediately after the news. The Euro fell versus the US dollar in a very volatile European session; breaking below the 1.16 mark after the SNB decided to end the foreign exchange cap of the Swiss franc against the euro and lowered its key interest rates further into negative territory.
The Swiss franc rose 30% against the euro in an immediate reaction to the news.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1805 (5-DMA) levels, above which gains could be extended to 1.1832 (10-DMA) levels. On the flip side, support is seen at 1.16 levels, below which it could extend losses to 1.1580 levels.
Currently, the EUR/USD traded at 1.1742, -down 0.41% on the day, having collapsed to fresh multi-year lows of 1.1580 immediately after the news. The Euro fell versus the US dollar in a very volatile European session; breaking below the 1.16 mark after the SNB decided to end the foreign exchange cap of the Swiss franc against the euro and lowered its key interest rates further into negative territory.
The Swiss franc rose 30% against the euro in an immediate reaction to the news.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1805 (5-DMA) levels, above which gains could be extended to 1.1832 (10-DMA) levels. On the flip side, support is seen at 1.16 levels, below which it could extend losses to 1.1580 levels.