EUR/CHF falls to multi-day lows after ECB

• ECB raises rates by 75 bps, will hike further.
• Euro tumbles after Lagarde’s press conference.
• EUR/CHF hits ten-day lows, finds support above 0.9660.

The EUR/CHF tumbled following the European Central Bank meeting and after Lagarde’s press conference. The cross bottomed at 0.9661, the lowest level since August 29.

The combination of a weaker euro and a stronger Swiss franc across the board sent the EUR/CHF sharply lower. The decline found support above 0.9660 and it is hovering slightly below 0.9700, back above the flat 20-day Simple Moving Average, currently at 0.9680.

As expected, the ECB raised interest rates by 75 basis points and said it expects more rate hikes at their next meetings. Lagarde noted that more than two but less than five meetings are ahead to get to the end of the cycle. “We expect another 75bp hike in October. The central bank remains relatively optimistic on the growth outlook. We see higher rates, a flatter curve and a weaker EUR ahead”, said analysts at Nordea.

The Swiss franc was among the top performer prior to the ECB decision and it remained strong afterwards. The USD/CHF is hovering around 0.9730, down for the second day in a row, at the lowest level since late August.

Technical levels