The USDCHF rises after SNB cuts rates

The SNB cut rates by 25 basis points, which was the "expected" move but not a certainty (68% probability). In response, USDCHF rallied as the CHF moved lower.

Technically, the 0.8758 support level (lows from this week and last) was briefly breached before the decision, with the pair hitting 0.8755, just 3 pips lower. However, sellers failed to generate further downside momentum, which may have contributed to the subsequent upside move.

Following the rate cut, USDCHF broke above key moving averages clustered together—the 100-hour MA (0.88036), 200-hour MA (0.8810), and 200-day MA (0.88119). After an initial pullback AFTER the break, buyers defended support at the 100-hour MA, leading to renewed upside momentum.

In early U.S. trading, the pair has extended to a new daily high of 0.88358. Further upside could be seen if the cluster of MAs can continue to hold (risk level for buyers), would target the high from last week and the 38.2% retracement of the move down from the February 28 high. Those levels come in at 0.8862. Get above that level on opens door for further momentum toward the 0.8900 area.