Technical Analysis: USDCHF approaches key hurdle ahead of SNB, US GDP
USDCHF extends the early week’s bounce-off 21-day SMA while directing bulls towards the key horizontal resistance ahead of the Swiss National Bank’s (SNB) monetary policy meeting. Given the overbought RSI conditions and the SNB’s anticipated hawkish tone, despite no range expectations, the pair is likely to step back from 0.9375-80 resistance area comprising multiple levels marked since June 11. However, 50% Fibonacci Retracement of March 2020 to January 2021 downside, at 0.9325, followed by a 21-day SMA level of 0.9236, can restrict the quote’s pullback moves.
Meanwhile, an upside clearance of 0.9380 will trigger a rally targeting the 61.8% Fibonacci retracement level of 0.9465. Though, the 0.9400 round-figure can offer an intermediate halt during the rise. In a case where the USD/CHF bulls keep the reins past-0.9465, the June tops near mid-0.9500s will be the key to watch.