(Action Economics) - 11-Jan-12 08:39 - EUR-CHF continued to draw support ahead of 1.2100 option barriers, with local names working corporate interest and speculative accounts buying dips, though upward momentum remains capped ahead of offers from 1.2140 to 1.2160, which have been in place since Monday's resignation by SNB's Hildebrand.

EUR-CHF showed scope for more downside pressure after a bearish technical backdrop was reinforced by Hildebrand's decision, but SNB policy remains unchanged and it signaled its intent to defend the EUR-CHF lower limit at 1.2000 in unlimited amounts.

USD-CHF headed back below 0.9500 after early two-way action in front of 0.9500 was overwhelmed by Asian dollar supply, though interest remains on the low side in quiet trade.

Near-term direction for USD-CHF will be dependent on EUR-USD flows, which are being dominated by large outstanding option strike congestion between 1.2700 and 1.2800, along with real money interest.

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