EUR/CHF ended last week testing the 1.20 level. The SNB has vowed to intervene to keep EUR/CHF above 1.20 in order to keep CHF from appreciating too much. In the recent months, the euro has been pressured amid a downturn in the Eurozone especially in Germany. The integrity of the 1.20 floor is in question.Official Speech (pdf) SNB president Thomas Jordan spoke today, before the start of this week's trading. Aside from the academic speech regarding monetary policy, he warned against a recently proposed gold-initiative. On Nov. 30, there will be a vote on whether the SNB will be required to hold 20% gold in assets. In October, the bank held 7.8%. Jordan warned that if passed, the requirement will increase the cost of intervening. With EUR/CHF near 1.20, whether this gold-initiative will pass is key to the market's confidence of whether the SNB will intervene if the pair falls below 1.20. EUR/CHF 4H Chart 11/24 (click to enlarge) The market started the week holding EUR/CHF above 1.20. The momentum for the Nov. 30 vote has slowed a bit, so the market has reason to believe it won't pass. Therefore, we should expect support at 1.20 heading into the vote. However, the upside should be limited to the 1.2040-1.2050 area, where we have support/resistance and the 200-period SMA in the 4H chart. If the vote passes, and the EUR/CHF drops to test the 1.20 level again, don't expect it to hold, and don't be surprised if stops get taken out for a sharp decline below 1.20. If the vote does no pass, the market will likely have more confidence on the SNB's ability to intervene. In this case, 1.20 is more likely to hold. Even so, the bullish outlook for the rest of 2014 should be limited ot the September highs around 1.2135.