SNB Chairman says monetary policy not sufficiently restrictive enough. (Pivot Orderbook analysis)

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• SNB Chairman says monetary policy not sufficiently restrictive enough.
• The Swiss Franc soars across the board, EURCHF falls hundred pips in minutes.
• USDCHF drops to its lowest in three months under 0.9500.

The pair currently trades last at 0.9524.

The previous day high was 0.9899 while the previous day low was 0.9652. The daily 38.2% Fib levels comes at 0.9747, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9805, expected to provide resistance.

The USDCHF fell sharply to 0.9450, reaching the lowest level since mid-August following comments from SNB Jordan. The Swiss Franc became the top performer of the American session with the EURCHF falling a hundred pips to 0.9743, the lowest in a month.

Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank, said on Friday the central bank is reading to take all necessary measures to bring inflation back into the range of price stability. He mentioned they have to take action and mentioned monetary policy is not sufficiently restrictive enough.

Jordan’s comments boosted the Swiss Franc. The USDCHF was already lower on the back of the broad-based slide of the US Dollar and tumbled to 0.9450. It then rebounded back toward 0.9500.

The pair is about to post a weekly loss of more than 450 pips, extending the reversal after making a double top at 1.0150. The Dollar is suffering the worst weekly performance in months amid expectations of a less aggressive Federal Reserve ahead.

Data release on Thursday showed inflation cooled in the US in October. On Friday, the University of Michigan presented the November Consumer Sentiment report: the Sentiment Index declined from 59.9 to 54.7 while 5-year Inflation expectations rose from 2.9% to 3%.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9524 at the time of writing. Pair opened at 0.9653 and is trading with a change of -1.34 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9954, 50 SMA 0.9855, 100 SMA @ 0.9742 and 200 SMA @ 0.9623.

The previous day high was 0.9899 while the previous day low was 0.9652. The daily 38.2% Fib levels comes at 0.9747, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.9805, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.957, 0.9488, 0.9323
• Pivot resistance is noted at 0.9817, 0.9982, 1.0064

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