Global macro overview for 16/03/2017:
The Swiss National Bank decided to leave the interest rates unchanged at the level of -0.75%. The 3-month LIBOR lower target range was set at -1.25% and 3-month LIBOR upper target range was put on hold at -0.25%. Moreover, in the official statement, the SNB said that it would remain active in a forex market as necessary due to the fact that Swiss Franc is significantly overvalued. Some changes were introduced in inflation expectations, so SNB upgraded 2017 CPI forecast to 0.3% vs 0.1% in December and 2018 CPI to 0.4% vs 0.5% previously. The Gross Domestic Product projections were maintained at the level of 1.5%. In conclusion, except slight uptick in inflationary pressures the decision came as no surprise to markets and the old good SNB rhetoric was maintained.
Let's now take a look at the USD/CHF technical picture in the H4 time frame after the news was released. The market has broken out below the golden trend line support and now is trading just below the technical resistance at the level of 1.0008. The trading conditions are oversold and the price should start a corrective move to the upside any time soon. The first target after the 1.0008 violation is the technical resistnace at the level of 1.0058.
