Forex: EUR/CHF falls to 1.2200 on ECB’s press conference

FXstreet.com (Barcelona) - ECB Draghi’s comments at the press conference took back all gains the EUR made in reaction to the 25bp rate cut to 0.50%. The marginal lending facility rate was cut by 50bp to 1.00%. The EUR/CHF rose from 1.2220 area to 1.2259 high only to retrace those gains and even test the psychological level at 1.2200 that held the cross against further downside.

The EMU manufacturing PMI dropped slightly from 46.8 to 46.7, but analysts were expecting 46.5. The German figure eased from 49.0 to 48.3, instead of 47.9. The Italian number rose from 44.5 to 45.5, above 44.8 expected. The Spanish PMI came in higher, from 44.2 to 44.7 in April, beating 44.5 consensus. The Greek manufacturing figure rose from 42.1 to 45.

“A support can be found at 1.2208 (22/04/2013 high). Hourly resistances are at 1.2264 (01/05/2013 high) and 1.2312 (26/04/2013 high)”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet, favoring further longer-term upside for EUR/CHF towards the next psychological threshold at 1.30.