USD/CHF Falls As SNB Leaves Cash Rate Unchanged

FXOpen

The US Dollar (USD) extended downside movement against the Swiss Franc (CHF) on Thursday, dragging the USD/CHF to less than 1.8940 following the US central bank’s decision to trim the monthly asset purchase program by $10 billion to $35 billion. The sentiment remains bullish due to Higher High and Higher low in the recent wave. The huge bearish pin bar which emerged on the daily chart recently is however keeping the pair under selling pressure.

Technical Analysis

As of this writing the pair is being traded near 1.8943. A hurdle can be seen around 1.8962, the 200 Simple Moving Average (SMA) ahead of 1.9036, the bearish pin bar as shown in the following chart. A break above the 1.9036 resistance area could spur a renewed buying interest, validating a fresh rally above the 1.9100 handle.

usdchf-d1-capital-trust-markets[1]

On the downside, the pair is likely to find a support around 1.8907, the low of the bearish pin bar and 38.2% fib level ahead of 1.8878, the confluence of 55 Simple Moving Average (SMA) & 100 SMA and then 0.8780, the 76.4% fib level.

Swiss Monetary Policy

The Swiss National Bank (SNB) kept the benchmark interest rate unchanged at 0% today amid fragile growth and deflation in the economy. The decision was widely expected by the analysts, thus the USD/CHF shunned the Switzerland monetary policy announcement and continued to fall.

CB Leading Indicator

The Consumer Board of the US is due to release the leading indicator data today. According to the average forecast of different analysts, the leading indicator increased by 0.6% in May as compared to 0.4% in the month before, better than expected actual outcome will be seen as bullish for USD/CHF and vice versa.

Conclusion

Considering the overall technical and fundamental outlook, selling the pair around the current levels appears to be a good strategy, the stop loss should be placed at the swing high of the bearish pin bar as described above.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.