USDCHF strengthens after Swiss National Bank rate cut

The USDCHF currency pair has shown some positive movement recently. It bounced back from lows around 0.8755 earlier this week after the Swiss National Bank cut interest rates by 25 basis points. This rate cut weakened the Swiss franc and strengthened the USDCHF. The USDCHF rose above several important moving averages. These include the 100-hour moving average at 0.8798, the 200-hour moving average at 0.8813, and the 200-day moving average just below at 0.8810. However, later in the day, the price pulled back to the 200-hour and 200-day averages, finding support there. In the Asian trading session today, the USDCHF moved back up towards yesterday’s high of 0.8845 but faced selling pressure. It dipped below the 200 moving averages before finding support again at the 100-hour moving average. Currently, buyers and sellers are focused on the key levels around these moving averages. If the USDCHF stays above the moving averages, there could be further gains. A push above 0.8845 would lead traders to target the 0.8862 level, which is significant because it represents a 38.2% Fibonacci retracement from the recent drop. On the other hand, if the price falls below the 200 moving averages, it may look to test the 100-hour moving average again. A break below 0.8780 could suggest more significant downward movement. In summary, USDCHF has gained momentum after breaking above key levels. However, it faces resistance near 0.8840 to 0.8862. The 100-hour moving average is currently acting as support, and maintaining this position will be essential for any further upward movement.