USD/CHF rejected again at 0.9530, returns below 0.9500

• The USD/CHF is rejected again at 0.9530 area and returns to 0.9500.
• The dollar posted a feeble upside attempt following the SNB statement.
• USD/CHF to move back lower towards 0.9425 – Credit Suisse.

The dollar is losing steam against the Swiss franc, giving away the moderate recovery seen after the Swiss National Bank’s monetary policy meeting. The upside attempt witnessed during the European session has been capped again at 0.9530 area, leaving the pair trapped within a 100 pip range above 0.9460.

The SNB fails to talk down the CHF  

The Swiss franc lost ground during the European trading, following the monetary policy statement by the Swiss National Bank. The USD appreciated beyond 0.3% from 0.9480 to be capped at 0.9525 for the third time in as many days, before retreating to 0.9500 area.

The Swiss central bank left its benchmark interest rate unchanged at -0.75%, as widely expected, and reiterated its commitment to intervene in the foreign exchange markets to stem CHF appreciation. Beyond that, the bank reaffirmed its expansionary policy stating that it is necessary to ensure appropriate economic conditions in Switzerland.

 USD/CHF to move back lower towards 0.9425 – Credit Suisse

The FX Analysis team at Credit Suisse observes the USD/CHF immerse in a short-term consolidative phase which is likely to be broken lower,  “We ideally look for weakness to extend further and see support initially at 0.9456, ahead of 0.9425/24, where we might see an attempt to hold at first. Removal of here would then expose the current June low at 0.9376, beneath which would see the recently completed ‘hammer’ candlestick negated and we would then expect to see another leg lower. Support is seen thereafter at 78.6% retracement of the March 2020 surge at 0.9337/21, where we also could see fresh buyers at first. Below here though could see the current low for the year at 0.9183 exposed.”

USD/CHF key levels to watch