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  • SNB leaves interest rates unchanged as expected.
  • The sharp rise seen in GBP/USD and EUR/USD weighs on the greenback.
  • US Dollar Index breaks below 94 ahead of US data.

After trading above mid-0.96s during the first half of the day, the USD/CHF pair lost its traction in the last hour amid a broad-based USD weakness and fell toward the 0.96 mark. As of writing, the pair was down 0.6% on the day at 0.9615.

Earlier today, the SNB announced its decision to keep its policy rate unchanged at 0.75%. Commenting on the bank’s policy statement, “the SNB reiterated its willingness to intervene if needed in foreign exchange markets to prevent an appreciation of the Swiss franc. The central bank still believes the franc is “highly valued”. It insisted on the appreciation of the franc over the past three months and believes the situation on the foreign exchange market is still fragile,” ING analysts said.

Meanwhile, a robust rally seen in the GBP/USD pair on the back of the upbeat retail sales data from the UK forced the USD to weaken against its other major rivals and the US Dollar Index broke below the 94 handle to touch its lowest level since early July at 93.86. At the moment, the index is down 0.7% on the day at 93.90.

Later in the NA session, weekly jobless claims, Philly Fed Manufacturing Survey and existing home sales from the U.S. will be looked upon for fresh impetus.

Technical levels to consider

The immediate support for the pair aligns at 0.9600 (Sep. 18 low/psychological level) ahead of 0.8535 (Apr. 10 low) and 0.9500 (psychological level). On the upside, resistances could be seen at 0.9685/90 (20-DMA/daily high), 0.9740 (200-DMA) and 0.9815 (50-DMA).