Global macro overview for 18/03/2016:

Despite the expanded stimulus program from the European Central Bank, the Swiss National Bank kept the interest rates on hold at the level of -0.75%, together with 3-Month Libor lower and upper target ranges at the levels of -1,25% and -0,25%, respectively. This decision might have very negative consequences because the ECB "bazooka program" launched this Wednesday may eventually put the Swiss currency under upward pressure versus the euro. In conclusion, the extended period of negative interest rates might weaken the demand for the franc by making it less attractive for investors from overseas. Even if negative rates are also intended to support economic growth by encouraging banks to lend more to consumers and businesses, the recent extension of QE program from the ECB might be more damaging than helping the Swiss economy in the longer run.

Let us now take a look at the EUR/CHF daily time frame. We can see a steady rise of the market after the peg removal event over a year ago. Currently, it looks like the market will be continuing its slow uptrend towards the 1.2000 level as long as the golden trend line is not violated. The next resistance for bulls is seen at the level of 1.1048 and the next support is seen at the level of 1.0808.