USDCHF bounced off the 200-hour and 200-day moving averages at 0.88119, having surged following the Swiss National Bank’s rate cut, which weakened the Swiss franc. This led the currency pair to rise above several key moving averages, peaking at 0.8845 before retreating during the U.S. sessions.
On the downside, the correction found support at the 200-day and 200-hour MAs, now positioned at 0.88119. This level is essential as trading progresses into the new day.
Key Levels And Outlook
Key levels include a bullish outlook if prices remain above 0.88119, while a dip below this point, especially under the 100-hour MA at 0.88018, could suggest a bearish shift.
The initial reaction to the interest rate decision sent the pair higher, pushing through multiple resistance levels before stalling just below 0.8850. Once momentum faded, sellers emerged, prompting a pullback. However, rather than extending losses, the decline stabilised at the same technical indicators that previously acted as barriers to the upside. This suggests market participants view these levels as areas of value.
The rate cut itself reinforced weakness in the Swiss franc, allowing buyers to take control. If the pair maintains its position above the 200-hour and 200-day moving averages, further upside could be explored. Traders will be monitoring whether momentum builds enough to challenge recent highs again.
If selling pressure intensifies and the pair slips below 0.88119, the next focus will shift to the 100-hour moving average at 0.88018. Such a break would raise concerns about a potential change in direction, encouraging more caution.
Momentum And Price Action
Momentum indicators may help gauge whether buyers can maintain control. Sustained trade above support increases the likelihood of an attempt toward recent peaks. Conversely, falling below the key zones would place emphasis on lower technical markers.
As the market absorbs the rate cut’s effects, price action around these levels should offer insight into near-term sentiment. Traders tracking these thresholds will likely adjust their approach accordingly in the coming sessions.
