SNB Cuts, USDCHF Dips Then Recovers: What's Next?

USDCHF pared some of its gains after the SNB rate cut. It hits an intraday high of 0.82142 and is currently trading around 0.81737. Intraday bias appears to be bullish as long as the support at 0.8140 holds.  

The Swiss National Bank (SNB) cut its policy rate by 25 basis points to 0% effective June 20, 2025, primarily in response to Switzerland entering deflation with a May CPI of -0.1% and the franc's appreciation exacerbating import price declines. This marks the sixth consecutive rate cut since March 2024, with SNB now forecasting persistently low inflation well below its 0-2% target for the foreseeable future, and signaling readiness for further action, including potential foreign exchange interventions or a return to negative rates if deflation persists, aligning with a global trend of monetary easing.

Technical Analysis Points to Further Upside

The pair is trading below the   55-EMA, 200 EMA, and 365 EMA on the 4-hour chart, indicating a bearish trend. The immediate resistance is at  0.8188, any break above targets 0.8250/0.8300.

Support Levels and Potential Declines

On the downside, near-term support is around 0.8140; any violation below will drag the pair to 0.8090/0.8000.I

Indicators (4-Hour)

CCI (50) - Bullish

Directional Movement Index -  Neutral

Trading Strategy Recommendation

It is good to buy on dips around 0.8160 with a stop-loss at 0.8120 for a TP of 0.82400.