USD/CHF advances further to 0.9770 on SNB’s status -quo

USD/CHF extended its break higher and now targets 0.9800 levels, as the Swiss franc remains unimpressed by the Swiss National Bank’s (SNB) unchanged monetary policy stance.

USD/CHF eyes 200-DMA

Currently, the USD/CHF pair rises 0.30% to fresh session highs of 0.9767, having finally surpassed 10-DMA resistance placed at 0.9741.  USD/CHF broke its Asian consolidation box and jumped higher over the last hour, with the upside gaining further traction following the SNB monetary policy announcement, where the central bank left the deposit rate unchanged at -0.75%.

The Swiss franc witnessed fresh selling on the back of downward revision to the bank’s inflation forecasts and also as the SNB that global economic risks remain to the downside, while reiterating the CHF remains ‘significantly overvalued’.

Focus now shifts towards the US economic releases, with the retail sales and manufacturing data to be closely watched.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9792/0.9800 (200-DMA/ round figure) and above which it could extend gains to 0.9833 (daily R2). To the downside, immediate support might be located at 0.9706 (Sept 9 low) and below that 0.9650 (psychological levels).