The mighty CHF continues its buying spree and ( similar to EURUSD) USDCHF is around 2 year highs.
Since Adam’s post yesterday we’ve broken down through 0.8930 lows last seen in feb 2012 and we’re now looking at november 2011 lows at 0.8900
There is a barrier option at that price which is holding so far with 0.8904 low post this morning.
Currently 0.8913 the rallies are unconvincing with sellers lining up at 0.8930, 0.8940 then 0.8970 and large at 0.9000
A break of 0.8900 will trigger stops down 0.8885 and even 0.8860 and there’s plenty of room to drop below that if we get on a roll with 0.8550 the end target
EURCHF also has vanilla options rolling off today at 1.2280 and 1.2300. Currently 1.2295
All delicately poised as has been the case in many pairs this week, and indeed continues to be so. Risk reward says go long of USDCHF down here with a tight stop but I’m not convinced that we’ve seen the bottom just yet and there’s no need for the SNB to be anxious unless euro sentiment turns around in a hurry.
USDCHF Daily 24 Oct
