By CountingPips.com
The euro has edged higher against the U.S. dollar in forex trading after hitting a four-year low on Monday while the European common currency fell to a new record low versus the Swiss franc today. The euro-dollar currency pair (EUR/USD) has been consolidating for most of the past two days in a range of approximately 135 pips following a bounce off the 1.1875 low on Monday to the 1.2008 high on Tuesday.
The EUR/USD fell under the 1.2000 exchange rate for the first time since late March of 2006 on Friday following the disappointing U.S. government jobs report and continued lower to establish a fresh four-year low on Monday. In today’s trading action, the pair opened the day at 1.1923 and ascended to a high of 1.2008 before retreating. The pair currently trades right around the 50-hour moving average in purple near the 1.1950 exchange rate.
EUR/USD Hourly Chart
Meanwhile, the euro fell to a new record low against the Swiss franc in trading today as the franc has benefited mightily as an investor safe haven choice over the euro due to the recent eurozone debt crisis and despite the threat of intervention by the Swiss National Bank (SNB). In 2009, the SNB intervened in the forex market periodically to keep the franc from strengthening against the euro to fight off deflation in Switzerland. The bank’s actions managed to help keep the EUR/CHF above the 1.5000 exchange rate while in 2010 the SNB’s less aggressive intervention policy and the eurozone’s debt crisis has led to a huge euro selloff. The EUR/CHF dropped all the way to the 1.3744 exchange rate today as the pair is on its way to declining for a third week in a row.
EUR/CHF Weekly Chart