"The revival remains fragile and is associated with uncertainties," the Zurich-based central bank said in its quarterly report published today. It also said that "the current expansionary monetary policy cannot be maintained throughout the entire forecast horizon without compromising medium- and long-term price stability."

Eoin Treacy's view The Euro peaked against the Swiss Franc in October 2007 and has sustained a progression of lower highs since. It found support in the region of CHF1.43 in October 2008 and quickly unwound the oversold condition relative to the 200-day moving average. It failed to push through the mean on that occasion and on several instances since and has now pulled back to test the 2008 low again.

The Euro is becoming increasingly overextended relative to the mean and although we have yet to see evidence that this decline is over, any additional downside is likely to prove difficult to sustain.