After the policy decision announcement from SNB, there is a rise in intraday buyers for #USDCHF at 0.89306.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/CHF attracts some intraday buyers after the SNB announced its policy decision.

The pair currently trades last at 0.89306.

The previous day high was 0.8998 while the previous day low was 0.892. The daily 38.2% Fib levels comes at 0.895, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8968, expected to provide resistance.

The USD/CHF pair rallies nearly 50 pips after the Swiss National Bank (SNB) announced its policy decision and touches a fresh daily, around the 0.8950 region during the early European session on Thursday.

The Swiss Franc (CHF) weakens across the board after the SNB, as was widely expected, decided to increase its benchmark sight deposit interest rate by 25 bps, from 1.50% to 1.75%. This marks the fifth successive interest rate hike, though the lack of fresh hawkish signals reaffirms expectations that the SNB will be on hold for at least the rest of the year. Apart from this, a modest US Dollar (USD) strength prompts some intraday short-covering around the USD/CHF pair.

The USD uptick, however, lacks bullish conviction in the wake of the uncertainty over the Federal Reserve’s (Fed) rate hike path. In fact, a duo of Fed officials on Wednesday called for more patience on rate hikes to allow the tightening delivered so far to filter through the economy. Moreover, Fed Chair Jerome Powell sounded less hawkish during his testimony before the House Financial Services Committee and said that it may make sense to raise rates at a more moderate pace.

Powell, however, added that the fight against inflation still has a long way to go and despite a pause in interest rate hikes last week, officials agreed borrowing costs would likely need to move higher. This, in turn, helps limit the downside for the USD and acts as a tailwind for the USD/CHF pair. That said, it will still be prudent to wait for strong follow-through buying before confirming that spot prices have formed a near-term bottom and positioning for any further gains.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8912 at the time of writing. Pair opened at 0.8931 and is trading with a change of -0.21 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.903, 50 SMA 0.8978, 100 SMA @ 0.9103 and 200 SMA @ 0.933.

The previous day high was 0.8998 while the previous day low was 0.892. The daily 38.2% Fib levels comes at 0.895, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8968, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8901, 0.8871, 0.8822
• Pivot resistance is noted at 0.898, 0.9028, 0.9058

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group