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"As we have said in several statements, at 1.20, the Swiss franc is still overvalued, and it is still the case"
- Thomas Moser, SNB (based on CNBC)
Pair's Outlook
USD/CHF was unable to get a foothold above the 200-day SMA last week and thus the currency couple looks inclined to soften even further. The nearest target resides at 0.9393, although it is expected to give in eventually and pave the way towards 0.9364/43. In the meantime, resistances at 0.9422/29 and 0.9452/76 should prevent prolonged surges.
Traders' Sentiment
Despite a dearth of demand for the buck in USD/CHF pair, a considerable majority, namely three out of four, traders continue holding long positions, pressing bears that constitute only 25% of the market. The similar situation is observed with orders placed, as 70% of them are to buy the U.S. Dollar and 30% are to sell it against the Swiss Franc.
© Dukascopy Bank SA