FXstreet.com (Barcelona) - The Dollar has fallen around 65 pips against the CHF in the early European session after be rejected by the 1.1600 resistant level and looking for the SNB rate decision at 13h GMT.
The USD/CHF rally from the 1.1490, along the Asian session, was capped at 1.1604 in the beginning of the European session, the, the pair has begun to falls to reach the 1.1440 level. Currently, the pair is trading around the 1.1550/70 band, looking for the SNB rate decision, market expects a cut of 25 basis points from the 0.50% to the 0.25%.
Michael Malpede, Analyst at EasyForex, says that SNB rate decision may spark selling of CHF: The technical outlook for the CHF is mixed. USD/CHF has been trading in a broad range between 1.1515 -1.1825 .The combination of SNB rate cut and move to quantitative ease could spark a retest of the 1.1800 level. A break below 1.1435, the March 10th low could set the stage for a move to the 2009 low of 1.1315 made on January 20th.
Valeria Bednarick, FXstreet Collaborator, says, in the other hand: if you place a Fibonacci to the last daily down leg from 1.1947 to the 1.0366 low, pair is holding above the 61.8% the key zone @ 1.1520/30 no clear break on daily despite many attempts. Besides, yesterday , Switzerland's biggest bank, posted a 20.9 billion Swiss franc ($18 billion) loss for 2008, more than initially reported, and said it remains extremely cautious about the outlook for this year as long as the pair remains closing days above the 1.1500 level... no downside chances yet.