EUR/CHF finds comfort around 1.0800

The Swiss franc is sharply higher vs. its European peer on Friday, with EUR/CHF currently hovering over the 1.0800 key barrier.

EUR/CHF weaker on ‘Brexit’

The cross has quickly faded yesterday’s spike to the 1.1020 area after the UK referendum showed the UK will no longer be a member of the European Union, giving away nearly four big-figures to levels last seen in August 2015 in the mid-1.0600s.

The ‘Brexit’ outcome has prompted the main central banks to activate contingency plans and incur in additional measures to avoid financial instability and further turmoil. In this context, the SNB has been active in the FX markets today, helping the safe haven CHF from strengthening further.

EUR/CHF significant levels

As of writing the cross is losing 1.16% at 1.0785 and a break below 1.0653 (2016 low Jun.24) would open the door to 1.0524 (low Jul.31 2015) and then 1.0323 (low Jul.6 2015). On the other hand, the next hurdle lines up at 1.0927 (200-day sma) followed by 1.0980 (55-day sma) and finally 1.1014 (high Jun.23).