© Dukascopy Bank
"The Swiss central bank's defense of the franc's currency ceiling against the euro may cause considerable damage to the nation's economy"
- former chief executive officer of UBS AG (based on Bloomberg)
Pair's Outlook
In accordance with expectations, initial attempt to break through 0.9507 has failed, leading to a sell-off down to 0.9394, just below a weekly pivot point. This support, in conjunction with a formidable level situated at 0.9372/59, should be capable of preventing the dip from extending lower, to 0.9310/07. In the long term USD/CHF is expected to clear 0.9499/0.9507 and advance further.
Traders' Sentiment
In general the Swiss Franc is the second least popular currency among its peers, resulting in 70% of positions being long on USD/CHF, whereas only 30% of market participant consider the Franc capable of gaining in value relative to the Greenback. Within 100 pips from the current price two thirds of traders have placed sell orders, leaving only 33% to buy orders.
© Dukascopy Bank