What is Goin On with the Swissy?

What is going on with the Swiss currency. The Swiss National Bank made a historical intrest rate increase. This was the first increase in Switzerland in around 14 years. Please any currency guys out there correct me if Im wrong but I believe it was one of the lowest interest rate before the increase in borrowing cost. The Swiss interest rate is still in the negative zone which is accommodative to growth. But this is a large rate hike that was unexpected hence the big move. The jump in price was also furled by the SNB's statements following the announcement. Their forecast for inflation has increased despite the rate hike. This is very bearish. This negatively effected the swiss stock market as well as other world markets but bolstered the Swiss Franc. Gold even had a nice green day off of the SNB's comments on future inflation. They also said they would intervene in forex markets if necessary which shows that they want to hold their currency up I believe. They could possibly be the only buyers currently hence the huge volume. The price of the currency had a massive jump following the SNB surprise rate hike decision. As you can see below it was the best performing currency last week. Surprisingly it did better than the Dollar Index which has been the ultimate safe haven during this inflationary period. The Swiss Franc was once considered a strong safe haven in bad economic times. That is not the case in this bear market. Maybe it is time for the Swissy to return to its safe haven status. Is it time to get some exposure to the Swiss Franc? Or is this a good opportunity to short the rip?

If there are any forex guys out there then please provide some insight. It would be much appreciated as I am just an equities guy. But I can read the technicals and if this was a regular equity stock then things would be starting to look interesting. Any insight would help from anybody. Where are my macro economic specialist?

As you can see below we had one of the biggest green daily candle in the history of the Swiss Franc. There is a huge bullish MACD divergence. The volume candle from the massive jump in price is the largest since the pandemic crash. There is still massive selling going on during this jump in price so that is slightly bearish. An interesting aspect of the price action is the massive whipsaw movement with a huge range in price as you can see in the chart at the very bottom. This usually happens near a bottom or a very strong support level where lots of buyers finally get the courage to buy in at this low level while there is still massive selling going on. It is also important ot note that Swiss Franc futures prices dated out to 1st quarter next year have had a massive jump in volume which is probably the most bullish case for the Franc.

As you can see on the chart below the Franc is near historically low levels. There was very strong bounces off of a long term trending support highlighted by the purple line. The monthly candles show very long wick bottoms bouncing off of this level. But if the downfall is not over then we might find support near all time lows highlighted by the yellow line. Remember that the SNB said they will intervene so you would think it will not go much lower theoretically.

The daily candles show a pennant pattern with higher lows near this historically low price which in my opinion is bullish for the very long term. We should naturally see some profit taking after a massive green daily candle like you can see below. It is possible the price could form a wedge pattern or a range to trade off of for some time. But if the price can make new local highs then this will be a bullish double bottom. We will see soon.