© Dukascopy Bank SA
"The initiative [requiring the central bank to hold a fixed portion of its assets in gold] is dangerous because it would weaken the SNB."
- Thomas Jordan, SNB President (based on Bloomberg)
Pair's Outlook
Having established a solid support at 0.9550, USD/CHF surged up to 0.9750, where the monthly R1 merges with this year's highest trading level. Eventually, the obstacle should be overcome, and this will pave the way for a jump to the 2013 high at 0.8840, which is standing near the monthly R2 and a multi-month up-trend (connects Aug 17 low and Nov 6 high). If the bullish carry on pushing further, the next destination will be the 2012 peak at 0.9970.
Traders' Sentiment
Since Friday the percentage of Dollar-optimists only grew—now they take up 65% of the market (63% on Friday). At the same time, a notable majority (64%) of the orders is set to purchase the Greenback against the Franc.
© Dukascopy Bank SA