CHF Swiss Franc - Swiss National Bank Cuts Rates by 50 Basis Points, Swiss Franc Significant Decline

After the Swiss National Bank chose to cut rates by 50 basis points on Thursday, both the Swiss Franc against the U.S. Dollar and the Euro fell noticeably. Martin Schlegel, the President of the Swiss National Bank, stated that the Swiss National Bank lowered interest rates to address lower-than-expected inflation and is prepared to adjust monetary policy again when necessary.

Regarding the USD/CHF trend, based on technical charts, the RSI and stochastic indicators are rebounding from oversold territory, while the exchange rate is pushing towards the 0.90 level. Therefore, in the short term, attention should be paid. If this level is also broken upwards, it is estimated that the USD/CHF will see a new wave of upward momentum. The next resistance levels are expected at 0.9050 and 0.91, with further references at 0.9160 and the high of May 1 at 0.9224. As for immediate support, it is anticipated around the 50-day moving average at 0.8730 and the level of 0.8610, with the next level seen at 0.85.

Forecast range:
Resistance: 0.9000* - 0.9050 - 0.9100 - 0.9160 - 0.9224
Support: 0.8730 - 0.8610 - 0.8500

Highlights of the Week:
Swiss National Bank President: The likelihood of negative interest rates at present is very low.
Swiss National Bank President: The central bank still has room for further interest rate adjustments.
Swiss National Bank President: If necessary, we are also prepared to intervene in the foreign exchange market.

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