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"The SNB doesn't see the need to step in immediately but it makes clear with the weaker inflation outlook that the cap is key and will definitely be defended."
- Natixis (based on Bloomberg)
Pair's Outlook
On Friday USD/CHF recovered most of the ground it gave up a day before. However, there is still plenty of obstacles the pair needs to overcome in order to confirm its bullish intentions and reach the 2013 high at 0.98. The immediate resistance is at 0.9417, represented by the monthly R3, followed by the 2013 Sep high at 0.9450. Meanwhile, the key short-run support is at 0.93, created by the rising trend-line, weekly S1 and 20-day SMA.
Traders' Sentiment
Just like last week the sentiment towards USD/CHF is neutral, as the percentages of long and short positions are nearly equal—55 and 45% respectively. But there are considerably more commands to purchase the Buck (76%) than to sell it (24%).
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