SNB Announces Intervention

The Swiss franc sold off sharply against the greenback, hitting its lowest level since December just shy of the 1.20-handle in a knee-jerk reaction to the SNB’s policy announcement earlier in the session. The Swiss National Bank cut its three-month LIBOR target to 0.25%, its lowest on record. The catalyst for the plunge in the Swissie was the subsequent announcement from Bank spokesman Abegg stating the SNB will be implementing intervention in the foreign exchange market -- prompting the Swiss franc’s largest one-day decline against the euro on record.

USDCHF has eased off its 3-month high at 1.1968 to trade beneath the 1.19-level. Support starts at 1.1830, followed by 1.1800 and 1.1750. Subsequent floors are seen at 1.1660, followed by 1.16 and 1.1570. On the topside, resistance begins at 1.19, followed by 1.1930 and 1.1970. Additional gains will target 1.20, backed by 1.2040 and 1.2080.