Swiss Franc traders are bracing for potential volatility later today as the Swiss National Bank (SNB) announces its latest rate decision. The market widely anticipates another 25-basis point cut, which would bring the policy rate down to 1%, one of the lowest among major global central banks. With inflation in Switzerland having fallen to around 1% and the currency experiencing a sharp appreciation—up 9% against the dollar and 5% against the euro—the central bank is increasingly concerned. Some traders are even speculating about the possibility of FX intervention should the franc continue to strengthen.
The USD/CHF pair is currently hovering just above its annual lows, testing trendline support on the hourly charts at 0.8374. A less dovish stance from the SNB could swiftly drive the pair down to challenge these levels, particularly if the dollar weakens over the coming sessions. The next significant support is the 2023 low of 0.8322, and below that, there is little in the way of technical support until the post-intervention lows of 2015. This highlights the extent of the SNB’s concerns about the current strength of the currency. Initial resistance stands at the short-term trendline around 0.8545, with more substantial resistance at the August high of 0.8750.
Resistance 2: 0.8750 – August High
Resistance 1: 0.8545 – Trendline Resistance
Support 1: 0.8374 – Trendline Support and September Low
Support 2: 0.8322 – 2023 Low
