Today Statement: Swiss Franc Mildly Lower after SNB

Swiss Franc is mildly lower after SNB left three-month Libor target unchanged at 0.25 and reiterated its stance to"prevent excessive appreciation of the Swiss franc against the euro," which would "result in an undesired tightening of monetary conditions." Reactions to the announcement is mild so far. EUR/CHF spikes higher to 1.4628 after the release but was limited below 1.4635 minor resistance. We'd expect EUR/CHF to continue to craw low as dusts settle.

Elsewhere, dollar and yen are still soft as market consolidates. US trade deficit came in narrower than expected at -37.3b in January. Exports dropped to $142.7b which imports fell to $180b. Jobless claims remains elevated at 462k. Canada trade surplus came in at CAD 0.8b versus expectation of CAD 0.4b. New Housing price index rose 0.4% mom in January. Aussie continues to consolidate after data showed 0.4k job market expansion in February while unemployment rate rose to 5.3%. Japan Q4 GDP was revised down to 0.9% qoq, 3.8% yoy.

Looking at dollar index, with 80.88 minor resistance intact, consolidations from 81.34 is still in progress and another fall might be seen to 79.82 support and possibly below. However, we're expecting strong support from 79.56 cluster support (38.2% retracement of 76.60 to 81.34 at 79.52) to conclude the consolidation and bring rally resumption. Above 80.88 minor resistance will flip intraday bias back to the upside for retesting 81.34 high first.

Based on ActionForex.com Technical Outlook