USDCHF tests the highs for the week after the sharp rebound after the SNB rate cut

The Swiss National Bank cut rates by 25 basis points yesterday and that reversed the downward bias that the USDCHF was experiencing going into the rate decision. The subsequent move higher move back above the 38.2% retracement of the move up from the December 2023 low at 0.8883, a swing area between 0.8881 and 0.8892, and the 200-day moving average of 0.88957. That cluster support is now a risk-defining level for buyers looking for more upside. It must stay above to keep the buyers hopes in play today and going forward.

On the topside, the 100-bar moving average on the 4-hour chart comes in at 0.8938. It’s 100-day moving average comes in at 0.89657. Both of those levels are upside targets today and going forward into the new trading week.

This article was written by Greg Michalowski at www.forexlive.com.