The USDCHF increased after the Swiss National Bank (SNB) cut interest rates by 25 basis points, a move that was anticipated with a 68% probability. Consequently, the Swiss franc weakened, allowing the USDCHF to rally.
Before the decision, the pair briefly dipped below the 0.8758 support level but did not sustain further declines. Post-rate cut, USDCHF surpassed key moving averages, including the 100-hour MA at 0.88036, the 200-hour MA at 0.8810, and the 200-day MA at 0.88119.
Usdchf Reaches Daily High
During early U.S. trading, the pair reached a new daily high of 0.88358. Continued strength may target levels at 0.8862 and, if surpassed, could lead to momentum toward the 0.8900 mark.
The recent rate cut from the Swiss National Bank sent the franc lower, making it less attractive against the dollar. Markets had anticipated a strong chance of this adjustment, though not a certainty, which meant some of the movement was priced in beforehand. Despite initially dipping below a key support level, the currency pair only briefly stayed there before rebounding sharply.
With the move past several moving averages, the technical outlook has changed. Breaking above the 100-hour, 200-hour, and 200-day moving averages signalled a shift, reinforcing the upward direction. Price action in these moments tends to indicate broader sentiment, and the momentum behind the advance suggests that traders adjusted their positions quickly in response to the decision.
Key Levels And Resistance
In the early U.S. session, strength continued to build, pushing the pair to a fresh daily high. This suggests buyers stepped in aggressively following the policy announcement, and if the pace holds, the next areas of focus stand at 0.8862. Should that level give way, attention may turn towards the 0.8900 level, where further resistance could emerge.
Traders should monitor any follow-up statements from the central bank for indications of future policy intentions. A dovish stance could add to the weakness in the franc, reinforcing this trend. At the same time, any broader market shifts in risk sentiment or movements in U.S. yields may influence price action in the near term.
As positioning adjusts, volatility could remain elevated, particularly with technical levels now in play. The reaction around resistance zones in the coming sessions may offer further confirmation of whether this trend has further room to run.
