USD/CHF rejected at daily R1, but keeps 1.02 ahead of SNB

The USD/CHF pair is seen holding ground well above 1.02 handle, as the USD bulls still remain underpinned by Fed’s hawkish stance heading into the SNB monetary policy assessment due later in the session ahead.

USD/CHF awaits SNB

Currently, the USD/CHF pair moved-off eleven-month tops reached at 1.0257, although remains strongly bid near 1.0225 level amid renewed USD buying across the board, as markets begin to discount a favorable sentiment towards the buck, once the European traders hit their desks and react to the hawkish FOMC statement.   

However, the upmove may remain fragile as investors would shift their focus towards the SNB quarterly monetary policy assessment and pay close attention to SNB Chairman Jordan’s comments on the exchange rate level.

All in all, the Swiss National Bank (SNB) is expected to keep the target range for the benchmark 3-month LIBOR rate at -1.25 to -0.25% on Thursday. While SNB Chief Jordan is likely to reiterate the rhetoric on the Swiss franc.

USD/CHF Technical Levels

To the upside, the next resistance is located at 1.0257/59 (multi-month high/ daily R1) and above which it could extend gains to 1.0300 (round figure) and 1.0331 (Nov 2015 high) next. To the downside, immediate support might be located at 1.0200 (zero figure) and below that 1.0173 (5-DMA) and from there to 1.0145/42 (10 & 20-DMA).