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18 Sep 2014
USD/CHF settled above 0.94 , and ready for new highs on SNB
FXStreet (Moscow) - USD/CHF opened the day at 0.9409, posted yearly high at 0.9432 in Asia, but retreated to current 0.9400.
To cut, or not to cut?
The pair is ready to move higher, and the last hurdle on its way is the SNB rate decision. The market has already started to price-in the possibility of negative rates at the current meeting, as there are factors in favor of such an outcome. First, the euro zone economy slowing is taking its toll both on the Swiss economy, and on the CHF exchange rate. Second, the price pressure keeps falling fueling the risk of deflation in the country. And third, the recent monetary tools adopted by the ECB pave the way for the SNB to follow. If the authorities choose to lower rates to negative levels, the pair may surge to 0.9452 initially.
What are today’s key USD/CHF levels?
Today's central pivot point can be found at 0.9386 with support below at 0.9347, 0.9281 and 0.9242, with resistance above at 0.9452, 0.9491, and 0.9557. Hourly Moving Averages are bullish, with the 200SMA at 0.9350 and the daily 20EMA bullish at 0.9269. Hourly RSI is bullish at 71.
To cut, or not to cut?
The pair is ready to move higher, and the last hurdle on its way is the SNB rate decision. The market has already started to price-in the possibility of negative rates at the current meeting, as there are factors in favor of such an outcome. First, the euro zone economy slowing is taking its toll both on the Swiss economy, and on the CHF exchange rate. Second, the price pressure keeps falling fueling the risk of deflation in the country. And third, the recent monetary tools adopted by the ECB pave the way for the SNB to follow. If the authorities choose to lower rates to negative levels, the pair may surge to 0.9452 initially.
What are today’s key USD/CHF levels?
Today's central pivot point can be found at 0.9386 with support below at 0.9347, 0.9281 and 0.9242, with resistance above at 0.9452, 0.9491, and 0.9557. Hourly Moving Averages are bullish, with the 200SMA at 0.9350 and the daily 20EMA bullish at 0.9269. Hourly RSI is bullish at 71.