USD/CHF rebounds sharply on SNB, back above 0.9600

The Swiss franc failed to benefit from the SNB steady interest rates decision, and trimmed gains against its American counterpart, with the USD/CHF pair swinging back to 0.96 handle.

USD/CHF re-attempts 5-DMA at 0.9628

Currently, the USD/CHF pair drops -0.14% to 0.9602, struggling to take on the recovery from 0.9572 lows. The major stalled its downslide and rebounded sharply higher last hour after the SNB kept rates on-hold at its monetary policy assessment this Thursday. The Swiss franc was largely hit after the policy report mentioned yet again that the CHF still remains significantly overvalued.

Moreover, the Swissie also erased partial gains as the SNB report lower inflation and growth projections, ‘expecting the moderate growth in the global economy to sustain over the coming quarters’.

Next of note for the major remains the US CPI report due later in the MA session, which will provide further momentum on the USD moves.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9628/38 (5 & 10-DMA) and above which it could extend gains to 0.9695/0.9700 (daily R2/ round number). To the downside, immediate support might be located at 0.9565/61 (Apr 29 & May 5 Low) and below that 0.9530 (May low).