Swiss National Bank left interest rate unchanged at 0.75% on their monetary policy meeting today. The SNB will continue to maintain its expansionary monetary policy, aiming to stabilize price developments and support economic activity. The central bank said Swiss Franc remains highly valued and the situation in the FX market remains fragile, with negative interest rates and SNB remaining ready to intervene in the FX market to reduce pressure on the national currency. The USDCHF remains in steep near-term recovery rally from 0.9420 (08 Sep low) which so far retraced over 61.8% of 0.9765/0.9420 downleg and probes above daily cloud, which twisted on Wednesday and was attracting near-term bulls. The pair hit session high at 0.9660, retesting Wednesday’s high, after mild downside action post-SNB (the price fell to 0.9617 but recovered quickly). Daily studies are mixed, with MA’s turning into bullish setup but slow stochastic strongly overbought and negative momentum studies, requiring further signals. Close above daily cloud will be bullish signal for extension towards next target at 0.9688 (descending 100SMA), however, overbought conditions warn of stall signals. Daily cloud base (0.9605) and daily Kijun-sen (0.9592) mark lower pivots, loss of which would generate stronger bearish signal for deeper correction.
Res: 0.9660, 0.9688, 0.9700, 0.9765
Sup: 0.9648, 0.9617, 0.9605, 0.9592