But at the same time, they can't do much about it either

EUR/CHF D1 12-02

Despite the more positive risk mood that has helped risk trades push higher in the past week - with a minor retracement on Friday - the franc continues to stay resilient against the euro as EUR/CHF still trades around three year lows today.

In fact, the pair is trading so tepidly today that it is near unchanged levels right now even though we are seeing risk sentiment in the market turn more optimistic.

If anything, that spells trouble for the SNB and will only make their job to limit the Swiss franc appreciation even tougher than it already is right now.

Among other things underpinning the swissie, one can allude to coronavirus concerns and its impact on the euro area economy or even the political mess in Germany.

But if the franc won't go down even if market sentiment is vouching for it to move in that direction, then it looks like there could be more pain for EUR/CHF down the road.

And it is not like the SNB can do much either. Their monetary policy options are pretty much exhausted and their scope for intervention is somewhat limited given that they do not want to be viewed or labelled as currency manipulators.

The best they can do is to slow down the appreciation in the swissie but it doesn't look like they will be able to stop it altogether as the painful descend in EUR/CHF continues.

A technical break below support around 1.0624-39 and the 1.0600 will spell more danger to the downside for EUR/CHF, with sellers likely to eye 1.0500 next after that.