Forex: EUR/CHF latest upside totals 300 pips with new jump to 1.2343 high

FXstreet.com (Barcelona) - The EUR/CHF is extending its upside seen since last week, from 1.2140 and already as high as 1.2343. Today’s movement was mainly on the European session, from 1.2265 low to 1.2318 session high, and then US time, from 1.2286 to 1.2343 high, for now. It’s a 300-pip gain since last week.

After SNB’s Zurbruegg saying further CHF strength would have severe consequences for Switzerland economy, according to a report by Parliament’s finance delegation the government has an emergency plan to stabilize the CHF in case the Eurozone crisis worsens and the SNB fails to hold the 1.20 peg. Such information seemed to make more bears giving up on shorting the cross.

“The resistance at 1.2268 (19/03/2013 high) has been broken. Further strength towards the next resistances at 1.2336 (15/03/2013 high) and 1.2370 (14/03/2013 high) is favored as long as the hourly support at 1.2249 (intraday low) holds”, wrote MIG Bank analyst Bijoy Kar and Luc Luyet.