Economists assume that the CHF strengthening after the country abandoned currency pegging is damaging the economy. Due to stronger Frank tourism into the country became less attractive, while the majority of Swiss are traveling to Europe for shopping as they can buy more there with their stronger currency.
On the other hand, exports to the US increased due to the fast recovery of the American economy and relatively little CHF growth against the USD.
Generally, because of the negative interest rate at -0.75% in Switzerland, in the long-term the CHF is going to remain under pressure.
Support and resistance
The pair is trading near the important resistance level of 2/8 Murray. If it is not broken out, the pair might fall towards 0.9521 (8/8 Murray).
The nearest resistance level is 0.9583 (2/8 Murray).
Support level: 0.9552 (1/8 Murray).
Open short positons after the breakdown of the level of 0.9552 with the target at 0.9510 and stop-loss at 0.9583.Publication source