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"The very low, and on some occasions even negative, nominal return on cash in Switzerland has made the local currency less attractive."
- Goldman Sachs (based on Reuters)
Pair's Outlook
Despite the recent gains it is obvious the pair is on the defensive and cannot advance above the 0.93 resistance area. 91.7 and 91.4 cents might support the pair in the short and medium term but dips below it would not come as much of a surprise. In such case we could look at 2013 low at 90.2 cents. In case the pair unexpectedly breeches the mentioned resistance area it seems unlikely to advance above the 100 and 200-day SMAs.
Traders' Sentiment
At the moment Swiss franc is the most sold major currency across the board. Taking in to the account that is one of the most bought major currencies across the board it doesn't not come much of a surprise that market participants remain strongly bullish towards the pair. Majority (60%) of pending orders are in favour of the bulls as well.
© Dukascopy Bank SA