EUR/CHF unstoppable hits 1.1400 and gains 360 pips in 4 days

EUR/CHF reached late on Friday 1.1405, a new high since the SNB shock. The pair continues in a rally mode. It rose more than 350 pips in four days. It is the best week for the euro against the Swiss franc since January 2015. 

EUR/CHF overbought, so what?

From a technical perspective, indicators are showing extreme overbought readings but no signals of correction yet. The rally remains strong. The break of the 1.1100 handle triggered a bullish acceleration. EUR/CHF is now testing the 1.1400 handle and the 55-month moving average (price has been unable to trade above since 2008). The next long term resistance is seen at 1.1750, followed by the historic 1.2000. 

From the level, it had in January the pair is up by more than 6%. The improvement in the global economic outlook and the economic recovery in the Eurozone weakened the demand for the Swiss franc. The European Central Bank might start considering the withdrawal of some stimulus measures, adding more support to the EUR/CHF. 

Earlier during the week, Swiss National Bank President Thomas Jordan, repeated that the currency remains significantly overvalued. 

GBP/CHF, from worst to best 

Among majors, last week the pound was the worst performer and the Swissy the best. Seven days later, the opposite happened. Last week GBP/CHF dropped 350 pips and during the last five days, gained 470 and reached 1.2750, the highest since May.