USD/CHF is up by 0.05% at 0.9362 ahead of the Swiss National Bank (SNB) monetary policy meeting today. Analysts expect the central bank to maintain interest rates at the current -0.75%, which is the lowest globally. Even with the rates remaining unchanged, investors will be keen on the bank’s monetary policy assessment. The details of this assessment will highlight the lawmakers’ view on the country’s economic health.
SNB strives to maintain low interest rates as a support to the nation’s export economy. However, Switzerland’s stability lenders the Swissie attractive to investors worldwide. Last year, the central bank used 110 billion francs to limit the currency’s appreciation. As such, SNB’s interventions and tone in today’s meeting will influence USD/CHF.
USDCHF Technical Outlook
USD/CHF is consolidating its gains of the past three sessions ahead of the SNB interest rate decision. It is currently trading along 0.9362, which is a two-week high. Besides, the price is above the 20 and 50-day exponential moving averages.
While the formation is not well-defined, the cup-and-handle pattern is observable. As you may have learnt from our forex trading course, that is a bullish continuation pattern. As such, the pair is likely to breakout of its current resistance level to the upside.
On the flip side, depending on the SNB interest rate decision, USDCHF may pull back to 0.9300. If it breaks that support-turn-resistance, the next target will be 0.9227.