The EUR/CHF pair again managed to drift lower on a volatile session overall on Thursday. The pair isn’t very tradable at the moment, as the Swiss National Bank is currently defending a “floor” at 1.20 or so. But what this pair does tell us is that there may not be real underlying strength in the Euro, despite the moves seen in the EUR/USD pair. The ECB cut rates on the session, and the Euro managed to rise against the Dollar due to a dropping of the referendum out of Greece. However, the Euro can’t rally against a currency that is being weakened by its own central bank. This chart is a great relative strength indicator, but at the moment – nothing more.
