USD/CHF has been bearish since November last year, making lower highs as we see the price refusing around the 0.9122 resistance zone where the 100 SMA (green) stands on the daily chart. As a result, the pair reversed this month heading towards the 0.89 level. This week saw another rally ahead of Powell’s testimony before the US Congress, but markets were less hawkish than feared, driving the US dollar lower. The 50 SMA (yellow) acted as a resistance on the daily chart and rejected the price, allowing sellers to regain control.
USD/CHF Daily Chart – MA Continues to Keep the Pair Down
USD/CHF failed at 100 SMA earlier this month
The recent policy divergence between the Swiss National Bank (SNB) and the US Federal Reserve (FED) has contributed to the bearish price performance in Switzerland. USD/CHF . Specifically, the Fed has paused its tightening cycle, keeping rates in the 5.00-5.25% range and seeking more data before deciding on any further rate hikes. Conversely, the SNB has remained hawkish, with Jordan saying he is determined to bring inflation back to target and not deviate from the target, citing the risk of a second or third round of impacts. An additional rate hike equivalent to 25bps was implemented earlier today, bringing the bank rate to 1.75%.
Swiss National Bank interest rate decision
USD/CHF
