Forex: USD/CHF falls to 7-month lows on EUR/CHF movement

FXstreet.com (Barcelona) - Yesterday's SNB policy decision and press conference triggered CHF strength despite their unchanged opinion in regard to defending the 1.20 peg and its bank rates at 0%. Another push lower on the EURCHF chart back to its 50-day MA, at 1.2075, allowed an extension of the USDCHF decline to 0.9210, five pips below the Oct-17 low of 0.9215. That means the pair is now trading at 7-month lows as the market quotes at May prices.

The economic calendar will provide a feel of what to expect about Markit PMI figures for December in Eurozone countries ahead of EMU CPI inflation report and employment change. Later in the US, there will also be Markit PMI and CPI figures.

"USDCHF probes the 0.9240/15 support area where the past three months lows were made. This support zone should hold again", wrote Commerzbank analyst Axel Rudolph, pointing to the unlikely event of a drop to the 0.9169 three month support line.