© Dukascopy Bank SA
"We are enforcing the minimum exchange rate with all determination because it is the right monetary policy. The SNB has to do that to prevent a deflationary development"
- Thomas Jordan, President of the SNB (based on Bloomberg)
Pair's Outlook
Despite USD/CHF sliding slightly lower than expected, the currency couple was able to commence recovery at 0.9481/72, which first should lead to an attainment of 0.9545/61, then a retest of 0.9628/51. Given the long-term bullish outlook and majority of signals from weekly technical indicators being "buy", the pair is likely to erode the latter level and advance further.
Traders' Sentiment
USD/CHF is overbought to a substantial extent, as 71% of market participants stay long on the currency pair, being that the Swiss Franc is the least popular currency after the Yen. However, only a third of traders decided to place buy orders on USD/CHF. Accordingly, 67% of traders intend to sell the pair once it reaches a certain level.
© Dukascopy Bank SA