As we were expecting for a few weeks now, the Swiss National Bank intervened on the market yesterday by lowering rates and implementing various other measures to curb the appreciation in their currency.
It allowed the USD/CHF to stop its decline after a new record low at 0,7610. We now see a potential for a meaningful corrective move towards 0,80 first before a continuation towards former support at 0,83.
A break above 0,78 today would validate a morning star formation and confirm a possible bounce.
The main bearish trend remains intact though and we won’t get too excited with the current price actions. A major reversal will need time to take place. It is a matter of weeks and even months. We are only talking about corrective moves for the time being.