The USD/CHF pair extends its gradual descent into Europe, having met fresh supply on the release of Swiss National Bank’s (SNB) 2016 Financial Stability Report (FSR).USD/CHF trades below all major DMAs Currently, the USD/CHF pair drops -0.30% to 0.9586, hovering within a striking distance of fresh session lows posted at 0.9579 some minutes ago. The major accelerated to the downside as he Swiss currency sharply appreciated, despite the SNB FSR revealing that ‘subdued international demand and the strong franc have continued to weigh on economic growth.’In addition, broad based US dollar sell-off triggered by the Fed and BOJ policy decisions, also weighed down on the USD/CHF pair. In the day ahead, all eyes remain on the SNB quarterly monetary policy assessment due later in Europe.Thomas Köbe, SEB Economic Strategy, noted, “This Thursday, we expect the SNB Governing Board to maintain its position following its regular monetary policy meeting. Neither latest economic data nor recent statements by SNB board members indicate a need for further easing of monetary policy. Therefore, the target range for the three month libor will remain at between -1.25% and -0.25% and the interest rate on sight deposits at -0.75%. It will stress once again that the Swiss franc is still highly overvalued.”USD/CHF Technical Levels To the upside, the next resistance is located at 0.9622/24 (daily pivot/ 5-DMA) and above which it could extend gains to 0.9695/0.9700 (daily R2/ round number). To the downside, immediate support might be located at 0.9565/61 (Apr 29 & May 5 Low) and below that 0.9530 (May low).