On Thursday (December 12) during the European trading session, the USD/Swiss Franc jumped 0.8% in the early morning, reaching a two-week high, after the Swiss National Bank unexpectedly lowered interest rates by 50 basis points (from 1% to 0.50%), while the market generally expected a decrease of 25 basis points.

This is the fourth easing of policy in 2024, following three rate cuts of 0.25% in March, June, and September, and it is the largest rate decrease in nearly ten years.

The Swiss National Bank stated that it will continue to monitor the situation and take appropriate actions to maintain price stability, keeping inflation within the central bank's target range of 0%-2% (with a November inflation rate of 0.7%).

Following the actions of the Swiss National Bank, the USD/Swiss Franc expanded its rebound from 0.8725 (the highest price on December 6), recovering for the fifth consecutive day, breaking above the 61.8% Fibonacci retracement level between 0.8957 and 0.8725, and also weakening the lower platform near 0.8890.

(USD/Swiss Franc daily chart Source: Easy Forex)

It is necessary to continuously break above these levels to confirm a new Call signal and open the way for a complete retracement of the bearish Range from 0.8957 to 0.8725.

Technical analysis on the daily chart remains mixed, as the 14-day momentum Indicators continue to decline in negative territory, conflicting with the bullish configuration of the moving averages and the golden cross of the 10/200-day moving averages.

Recent trends are expected to continue leaning towards a bullish stance, while prices will remain above the breakout level of 50% Fibonacci at 0.8841, supported by the 20-day moving average, which has returned to the Resistance level.

On the downside, there is caution towards a break below the 200-day moving average pivot (0.8824), as a breach of this pivot would signal a stagnation in recovery and shift recent focus downwards.

Resistance levels: 0.8869; 0.8893; 0.8902; 0.8917

Support levels: 0.8841; 0.8824; 0.8814; 0.8780

At 19:45 Beijing time, USD/CHF reported at 0.8860/62, an increase of 0.21%.