1. Hello Guest Click here to check FX Binary Point Financial Directory

SNB rate decision preview: What to expect of USD/CHF?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Broad based USD selling after an all out dovish FOMC pushed the USD/CHF below its 200-DMA level of 0.9788 levels ahead of the Swiss National Bank (SNB) rate review.

    The pair closed below 200-DMA yesterday and made another attempt to rise above the same, before fresh USD selling in Europe pushed the pair down to 0.9754 levels.

    SNB expected to stay pat

    SNB is widely expected to keep the interest rate unchanged at -0.75%. Since, the ECB has ruled out need for further rate cuts, as of now there is little pressure on the SNB to ease. The bank has repeatedly stated the overvalued status of the CHF, but market believes the SNB would prefer tackling the same with timely FX market interventions.

    SNB’s take on economy and ECB’s actions would be watched out by the markets, but may not influence CHF significantly, unless it points to more easing in the near future.

    USD/CHF Technical Levels

    The immediate hurdle is seen at 0.9788 (200-DMA), above which the pair could target 5-DMA level of 0.9835. A violation there would open doors for 0.9913 (previous day’s high) – 0.9960 (50-DMA). On the lower side, support is seen at 0.9700 handle, which if breached shall expose 0.9661 (Feb 11 low) and 0.9591 (Sep 17 low).
    For more information, read our latest forex news.

Share This Page