USD/CHF builds on SNB rate cut move

Yesterday the USD/CHF later extended the move higher in the dollar. Earlier in the day the dollar had spiked higher on the surprise 0.50% rate cut from the Swiss National Bank (SNB). Perhaps the technically positive close above its 200 day moving average the night before was a clear warning of further CHF weakness and the SNB sure took advantage of that. So, the USD/CHF eventually rose above 0.8900 and later posted a US close at 0.8921. That close was also above a technical level also in place at exactly 0.8900. The next level of note would be the November 22 high, at 0.8957. The USD/CHF has extended the topside move slightly today, reaching a session high so far, at 0.8931. It is also clear the SNB desire their currency to weaken further and from this analyst perspective, it has been a long-term view, which has been expressed here before, that the USD/CHF has no business being priced underneath parity to the dollar. The USD/CHF is currently trading at 0.8927