USDCHF showed a minor pullback after the SNB monetary policy. The pair was one of the worst performers this month and hit a low of 0.88265. It is currently trading around 0.88901.
The Swiss National Bank (SNB) cuts the deposit rates by 25 bpbs points for a second consecutive time from 1.50% to 1.25%. The central bank has forecasted inflation at 1.1% in 2025 from the previous forecast of 1%.
The Swiss franc gained sharply this month as European political uncertainty and the escalation of tension in the Middle East increased demand for safe-haven assets.
The near-term resistance is around 0.8900, any break above will take the pair to 0.8960/0.9000. On the lower side, immediate support is around 0.8800 violation confirms further bearishness, a dip to 0.8720/0.8700 is possible.
RSI (14)- Beairsh divergence
It is good to buy on dips around 0.8900 with SL around 0.8848 for TP of 0.9000.
