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  • USD/CHF pauses the heaviest declines in 14 weeks around weekly low.
  • SNB’s vice-Chair  Zurbruegg welcomes recent weakening of the Swiss franc.  
  • Downside break of two-week-old rising trend line, 100-HMA favor bears.

USD/CHF consolidates the heaviest fall in three months around 0.9280 during the initial Asian session on Wednesday. In addition to the bears’ cautious mood ahead of the key US stimulus, recent comments from the Swiss National Bank (SNB) Vice-Chair Fritz Zurbruegg also triggered the quote’s corrective pullback.

In his latest interview with the Swiss media (Blick newspaper), SNB’s Vice-Chair  Zurbruegg welcomed recent weakness in the CHF while saying, “negative interest rates,  currency market interventions remain necessary.”

Although the recent bounce eyes 100-HMA level of 0.9293, the 0.9300 threshold and the previous support line from February 26, at 0.9322 now, seem to guard short-term upside of the USD/CHF prices.

If at all, the USD/CHF bulls manage to regain above the support-turned-resistance line, the monthly high near 0.9375 may return to the chart.

Meanwhile, early Thursday’s high and Friday’s low, around 0.9255, offers immediate support during the pair’s further downside.

Also acting as the key support is the 200-HMA level of 0.9206 and the 0.9200 round-figure.

USD/CHF hourly chart

Trend: Further weakness expected