Slobodan Drvenica
Windsor Brokers
USD/CHF
USDCHF rose to two-week high on 0.8% jump on Thursday morning, after the Swiss National Bank surprised by 50 basis points rate cut (0.50% from 1%) against widely expected 25 basis points cut.
This was the fourth policy easing in 2024, following three 0.25% cuts in March, June and September, and the biggest rate reduction in nearly a decade.
The SNB said it will continue to monitor the situation and act accordingly in order to maintain price stability and inflation within the central bank’s0%-2% range (November inflation was 0.7%).
Fresh post-SNB acceleration extended recovery leg from 0.8725 (Dec 6 higher low) into fifth straight day and broke above Fibo 61.8% retracement of 0.8957/0.8725 pullback, also denting the lower platform at 0.8890 zone.
Sustained break above these levels is needed to validate fresh bullish signal and open way for full retracement of 0.8957/0.8725 bear-leg.
Technical studies on daily chart are still mixed as 14-d momentum dips further in the negative territory, conflicting MA’s in bullish configuration and formation of 10/200 DMA golden cross.
Near-term bias is expected to remain with bulls while the price stays above broken Fibo 50% level at 0.8841, reinforced by 20DMA, which reverted to support.
Caution on loss of 200DMA pivot (0.8824) which would signal recovery stall and shift near-term focus to the downside.
Res: 0.8869; 0.8893; 0.8902; 0.8917.
Sup: 0.8841; 0.8824; 0.8814; 0.8780.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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