The Swiss Franc has been once again the main active currency last week after the SNB Vice President statement about a possible change in their policy with their currency being pegged to the Euro.
It is not an official intervention but a major news which resulted in a strong reversal on all the CHF pairs.
After a new historical low at 70,70 the USD/CHF has bounced all the way back towards 0,80 to close the week near this level. The pair even made a gap at the opening of the market rapidly trading above 0,79.
We think that the outlook is now more clear and we expect a continuation of the bounce towards 0,84 (50% retracement of the 2011 decline) where the market will find some resistance.
It is of course too soon to talk about a reversal but a major bottom is now in place.
