USD/CHF retreats from 1-week tops, drops to session lows post-SNB

• The USD remains on the defensive amid increasing Fed rate cut bets.
• The prevalent cautions mood underpins CHF’s safe-haven demand.
• SNB leaves interest rates unchanged and does little to move the pair.

The USD/CHF pair dropped to the lower end of its sideways consolidative trading range, around the 0.9930 region post-SNB.

The pair failed to capitalize on this week's goodish recovery move from closer to multi-month lows, with a combination of negative forces capping the up-move below the very important 200-day SMA. 

The US Dollar struggled to preserve the overnight recovery gains and remained on the defensive amid firming expectations that the Fed will eventually move to cut interest rates by the end of this year.

The pair was further pressurized by the prevalent cautions mood in the wake of fears of a further escalation in the US-China trade tensions, which benefitted the Swiss Franc's relative safe-haven status.

The pair, for now seems to have snapped three consecutive days of winning streak and had a rather muted reaction to the latest SNB monetary policy decision to hold sight deposit interest rate unchanged at -0.75%.

Market participants now look forward to the post-meeting press conference, where comments by the SNB Chairman and Governing Board Members might contribute towards producing some trading opportunities.

Technical levels to watch