USDCHF Near Resistance After Remarks From SNB’s Jordan

After experiencing a period of positive momentum for USD/CHF earlier this month, during which the pair soared over 0.92, the volatility in the CHF to USD exchange rate has decreased recently. This level has held as support despite a subsequent slide back to lows around 0.90. Furthermore, as SNB Chair Jordan revealed early this morning, purchasers have often returned to the market, encouraged by the SNB’s dovish attitude.

The Swiss National Bank’s (SNB) recent dovish move to cut interest rates by 25 basis points has contributed to downward pressure on the Swiss Franc (CHF) and could potentially drive the USD/CHF pair higher. This dovish stance from the SNB suggests that the central bank may maintain its accommodative monetary policy, which typically weighs on the value of the CHF.

USD/CHF Chart Daily – The 200 SMA is the Ultimate Support

As a result of the dovish SNB policy, the USD to CHF forex pair could see further upward movement, potentially pushing towards resistance levels around 0.9240-50. With inflation under control, there is a possibility that the SNB may continue with further rate cuts in the future, which is what CHF buyers are fearing and could further weaken the CHF and drive the forex pair higher.

Today it looks like the USD/CHF pair is experiencing a downward trend again, as it has fallen below several technical levels including the 200-bar moving average and the retracement level on the 4-hour chart. The price reached a low point at 0.9085, indicating a significant decline. To confirm further control by sellers, it would need to stay below the 38.2% retracement level at 0.9090. However, if it fails to stay below this level, there could be a shift back to the upside.

USD/CHF Live Chart