FxWirePro: EUR/CHF whipsaws around daily cloud, SNB hikes rates by 50 bps, matching consensus

Chart - Courtesy Trading View 

EUR/CHF was trading 0.11% higher on the day at 0.9963 at around 10:25 GMT, whipsaws at daily cloud after Swiss National Bank's (SNB) interest rate decision.

The Swiss franc strengthened on Thursday after the Swiss National Bank (SNB) raised its main interest rate by 50 basis points as expected. 

The central bank revised up its inflation projections and now sees consumer prices rising 2.6% this year and 2.0% in 2024, slightly above previous forecasts at 2.4% and 1.8%, respectively.

The SNB suggests economic growth is likely to remain modest for the remainder of the year and the economy is seen expanding 1.0% in 2023, better than 0.5% in the December forecast.

EUR/CHF made a session high at 0.9997 and a low of 0.9934, technical bias remains bullish. Momentum is bullish, MACD confirms further gains in the pair.

Support levels:

S1: 0.9932 (5-DMA)

S2: 0.9873 (200H MA)

Resistance levels:

R1: 1.0003 (55-week EMA)

R2: 1.0034 (Upper BB)

Summary: EUR/CHF slips lower after SNB rate hike, technical bias for the pair remains bullish. 5-DMA is immediate support at 0.9932. Break below to see minor weakness. Major weakness only below 200-DMA.