The USD/CHF pair is little changed in the morning session as traders wait for the Swiss National Bank (SNB) interest rate decision. The pair is trading at 0.8842, which is the lowest it has been since January 2015.
What happened? The SNB will deliver its rate decision at 08:30 GMT today. Economists believe that the bank will not do anything dramatic today. It will leave interest rates unchanged at -0.75% and pledge to continue supporting the economy.
Currency manipulator? This rate decision is notable because it comes a day after the outgoing Trump administration decided to label the country a currency manipulator. It accused it of intentionally working to devalue the franc in its bid to boost its exporters. However, this designation is interesting considering that the franc is at the lowest level in more than five years.
Fed decision: The USD/CHF is also reacting to the Fed rate decision. In it, the bank decided to leave interest rate unchanged and continue with the asset purchases.
What next for USD/CHF: On the hourly chart, we see that the USD/CHF price bounced back yesterday after the currency manipulator designation. It then resumed the downward trend as traders assessed the implication.
It is still below the 15 and 25-EMA while the RSI has continued to drop. Further, it is slightly below the important support at 0.8845 and the descending black trendline. Therefore, the pair will likely continue falling as bears aim for the next support at 0.8820, which is the lowest level since yesterday.
