Intraday bias remains bullish as long as support 0.8630 holds. It hit a high of 0.86992 and is currently trading around 0.86861.
The policy divergence between the US Fed and SNB supports the pair at lower levels.
The Swiss National Bank (SNB) surprised markets by cutting interest rates by 25 basis points to 1.50%, making the Swiss franc less appealing compared to higher rates in the U.S. Meanwhile, strong U.S. economic data, like good GDP growth and job numbers, has boosted the U.S. dollar's value. Swiss inflation has eased to 0.8%, leading to expectations of more easing from the SNB, which further weakened the franc. In contrast, rising inflation in the U.S. suggests that American interest rates may stay high for a while, supporting the dollar's strength.
Technical Analysis
The pair is currently trading above the 34- and 55-EMA on the 4-hour chart.
Near-Term Resistance: Current resistance is at 0.8700. A break above this level could lead to targets at 0.8698 and 0.8750. If the pair closes above 0.8750, it would complete a bearish pattern originating from 0.9224, allowing for possible gains toward 0.8800 and 0.8925.
Immediate Support: The next support level is at 0.8630. If this level is broken, the pair could drop to 0.8580, 0.8550, 0.8525, 0.8499, 0.8440, 0.8420, 0.8390, 0.8365 (61.8% Fibonacci projection), or even 0.8340.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Neutral
Overall, the trend remains bullish.
Trading Recommendation
Consider buying on dips around 0.8660 with a stop loss set at 0.8625 and aiming for a target price of 0.8748.
