USD/CHF recovers to 0.9685; Swiss franc fades SNB-spike

FXStreet (Mumbai) - The offered tone around the USD/CHF pair reduced a bit in the mid-European session, as the Swiss currency remains lifted on the back of the SNB unchanged monetary policy decision.

USD/CHF capped below 0.9700

Currently, the USD/CHF pair trades -0.29% lower at 0.9687, retreating from fresh session lows of 0.9668. The major remains trims losses, although remains submerged in the red, as the CHF bulls continue to dominate, riding higher on the SNB‘s rates on hold policy decision.

Earlier this session, USD/CHF dropped to lows at 0.9668 after the Swiss National Bank (SNB) decided to sit tight on its interest rates, keeping the benchmark rate at a record low of -0.75%. The target range for the three-month Libor was also unchanged, currently between –1.25% and −0.25%.

Looking ahead, the most important FOMC decision in years is finally imminent and traders are preparing for volatility spikes later in the session.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9766 (Sept 7 High) levels and above which it could extend gains to 0.9800 (Sept 10 High) levels. To the downside, immediate support might be located at 0.9640 (Aug 19 Low) levels and below that at 0.9593 (July 29 Low) levels.