EUR/CHF closer to 1.0500, critical level for the SNB

• Euro drops against Swiss franc, trades at lowest since 2015.
• EUR/CHF near 1.0500, level analysts consider the SNB is defending.

The EUR/CHF is falling modestly on Thursday, but it moved closer to a critical area: 1.0500. The pair stands at 1.0504, the lowest intraday level since July 2015.

Intervention from the Swiss National Bank is probably happing. The central bank wants to cub franc’s appreciation. The demand for the currency strengthened during the coronavirus pandemic, and the SNB likely have been acting in the markets at a level not seen since 2015.

Many analysts see the EUR/CHF falling below 1.0500 and dropping toward the parity level while others consider the SNB will continue to defend that area.

Risk aversion and more easing from the European Central Bank continue to weaken the pair. A break under 1.0500 could trigger stop losses and volatility, probably not at the extreme like what happened back in January 2015 when the central bank abandoned the 1.20 floor.

Technical levels