USD/CHF Trades to Monthly Lows Post SNB
- USD/CHF Trades to Monthly Lows Post SNB
- Daily Support is Found at the 200 Day SMA at .9944
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The USD/CHF is trading to new monthly lows this afternoon, as the SNB (Swiss National Bank) has elected to keep their key interest rates unchanged at -0.75%. While this move by the SNB was widely anticipated, US Dollar pairs continue to selloff primarily due to ongoing reactions to yesterday’s US FOMC rate decision.
Technically the USD/CHF is again trending lower in the short term, and trading back below its 10 day EMA (exponential moving average) found at 1.0059. This move lower has concluded what now appears to be a price retracement from this year’s standing high at 1.0035. Currently, the USD/CHF is approaching its 200 day MVA (simple moving average) at .9944. If prices decline below this point, it could have significant implications for the pair’s long term trend. Alternatively if the USD/CHF remains supported above this value, traders may look for prices to rebound back towards the previous swing high at 1.0176.
USD/CHF, Daily Chart with Averages
Current market sentiment for the USD/CHF remains at a positive extreme, with SSI reading at -2.01. This value suggests that over 66% of traders are currently net long the market. Typically when read as a contrarian value, negative extremes may suggest that prices may continue to trend lower. In the event of a bearish breakout beneath the previously mentioned 200 day SMA, traders should expect SSI to remain negative. Alternatively in the event that the USD/CHF finds support near present values, it would be expected to see SSI move back towards more neutral readings.
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--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.