On Monday, I said there is a good chance EUR/CHF will extend its losses as safe haven flows push the Swissie higher. At the time, EUR/CHF was trading at 1.3420 and today it has fallen to a low of 1.3276, reaching my 1.33 target. Although this represents a support level for the currency, there is a possibility that the move could extend to 1.32. The euro has reversed on rumors that a meeting is taking place in Germany that could change the default process of bonds.

 

Kathy Lien is Director of Currency Research at GFT, and runs KathyLien.com.