USDCHF pared some of its gains after mixed US economic data. It hits an intraday low of 0.83578 and is currently trading around 0.83585. Intraday bias appears to be bearish as long as the resistance 0.8405 holds.
SNB Governor Martin Schlegel referred to Switzerland's economic woes induced by global trade tensions, notably US tariffs that could disadvantage Swiss exporters. In forecasting weaker economic growth, the SNB never anticipates a recession. Schlegel further stated that all monetary policy tools, including potentially a return of negative interest rates, are on hand to maintain price stability. He rejected claims of currency manipulation, arguing that SNB interventions in foreign exchange markets only seek to preserve price stability and not to gain any competitive advantage, which would be considered unfair. Appreciation of the Swiss franc further makes it hard for exporters, but the SNB remains willing to intervene in foreign exchange markets if appreciation of the franc puts economic stability at risk. Generally, Schlegel's comments highlighted the SNB's caution in the face of international uncertainties and its determination to protect Switzerland's economic interests.
Technical Analysis Points to Further Upside
The pair is trading below the 34-EMA and 55-EMA 200 EMA on the 4-hour chart indicates a bearish trend. The immediate resistance is at 0.8378 any break above targets 0.8450/0.850/0.8520/0.8580/0.8625.
Support Levels and Potential Declines
On the downside, near-term support is around 0.8300, any violation below will drag the pair to 0.8270/0.8230/0.8180/0.8135/0.8090/0.8000.
Bearish Indicators
CCI (50) - Bearish
Directional movement Index - Neutral
Trading Strategy Recommendation
It is good to sell on rallies around 0.8378-80 with a stop-loss at 0.8435 for a TP of 0.8190.
