© Dukascopy Bank SA
"A lot [of the ECB action] was priced in, so for the SNB this is having little effect. So long as the franc holds above the 1.20 they [the SNB] won't do anything."
- Credit Suisse (based on Bloomberg)
Pair's Outlook
Despite formidability of the 200-day SMA, the bears pulled the price beneath 0.8945/28 yesterday, even though it was expected to act as a floor. Consequently, the sell-off may continue further from here, until USD/CHF encounters another demand area capable of giving the pair bullish impetus. This could be a cluster of supports at 0.8881/56, created by the monthly PP in conjunction with the 55 and 100-day SMAs.
Traders' Sentiment
There was only a marginal decrease in the relative amount of long positions—from 75% to 73%, but the share of the buy orders placed 50 pips from the spot price plunged quite noticeably, specifically from 68% to 44%.
© Dukascopy Bank SA