SNB backs Swiss franc gains despite turmoil in Euro zone

It would be a brace for CHF as central bank views the current phase of enlarged uncertainty surrounding the Greek debt problem. The Swiss franc may locate in a safer zone as SNB thinks that it is monitoring the consequences of the lingering crisis on the franc and the potential impact on the country very meticulously.

"We will remain active in the foreign exchange market as necessary in order to influence monetary conditions, adding that the central bank sees the franc as significantly overvalued and expects a weakening over time." The chairman SNB, Thomas Jordan stated in his remarks prepared for the central bank's shareholder meeting in Berne.

The imperial bank also secured its governance and structure of monetary policy to shareholders after a decision to remove the cap on the Swiss franc in January led to increased scrutiny of the central bank.

To substantiate the stance, we too are little bullish on franc versus euro. Here are some technical insights of CHF/EUR:

The intermediate trend being upward, for an intraday perspective pair is trading reasonably striking upbeat with hammer formed at 0.9642 levels on hourly charts. Hammer formed on downswings would usually be interpreted as near future will likely to have sharp bounces. On a positive note crossover seen on fast stochastic is also a good trading signal. RSI is steeping up in divergence with our desired direction.