Markets Analysis

Swiss National Bank Unexpectedly Cuts Interest Rates, Impact on EURUSD?【March 22, 2024】

March 22, 2024

Markets Analysis

Fundamental Analysis

  • The Swiss National Bank has decided to cut interest rates, leading to strong selling of the Swiss Franc.
  • US stock indices reach new highs, with the S&P 500 marking its 20th record this year.
  • USDJPY is trading around 151.50JPY.

EURUSD Technical Analysis

Analyzing the daily chart of EURUSD, the pair saw significant selling, erasing a previous large bullish candle with a large bearish candle, following the announcement by the Swiss National Bank. The price stopped falling at the Fibonacci retracement’s 38.2% line, but it was still a considerable impact.

As countries end their interest rate hiking cycles, the search for the timing to enter interest rate cutting cycles begins, increasing the likelihood that relevant currencies will be sold each time a central bank policy is announced.

The RSI is at 50, making it uncertain if a downward trend will commence.


Day Trading Strategy (1-Hour Chart)

Analyzing the 1-hour chart of EURUSD, the market is challenging, but currently, selling USD is dominant. This implies a relative increase in EURUSD. The sharp drop yesterday was a move linked to the announcement by the Swiss National Bank, not primarily due to selling EUR.

However, considering the daily chart, if it breaks clearly below the 38.2% line, it could trigger stop losses, potentially dropping to the price of the 200-day moving average.

Today, aim to place limit orders around the 200-day moving average, specifically buying around 1.08USD, settling at 1.0850USD, and stopping at 1.0780USD.

Support and Resistance Lines

Key support and resistance lines to consider are as follows:

1.08USD – 200-day moving average


Market Sentiment

EURUSD Selling: 40% Buying: 60%

Today’s important economic indicators

Economic indicators and eventsJapan time
Nationwide Core CPI in Japan8:30
UK Retail Sales16:00
Comments by Fed Chair Powell22:00
Comments by FOMC Member Next5:00

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.

Enter your email address

You can receive deals such as Milton Markets campaigns and bonuses just by registering your email address.

Technology vendor

This site or page is operated by Milton Markets.

Milton Markets is a trading name of Milton Markets Ltd. Milton Markets Ltd. is registered in Saint Lucia with registration number 2023-00166.

Risk Warning: Trading FX and CFD products involves a high risk of loss to your capital. Please read and fully understand the Milton Markets risk disclosure.

Milton Markets does not provide services to residents of the following countries,including but not limited to: Afghanistan, American Samoa, Belarus, Burundi, Canada, Central African Republic, Congo-Brazzaville, Cuba, Côte d'Ivoire, Eritrea, European Union countries, Guinea, Iran, Iraq,

Lebanon, Liberia, Libya, Mali, Myanmar, North Korea, Puerto Rico, Russia, Rwanda, Saint Vincent and the Grenadines, Somalia, Sudan, Syria, U.S. Virgin Islands, United States, Venezuela, Yemen, Zimbabwe.

Customers must be at least 18 years old or the age of legal majority in their own country.

Furthermore, opening an account is considered as registering on your own initiative without any solicitation by Milton Markets.

© MILTONMARKETS, All Right Reserved.