We know that the EUR market is very short, but part of this calculation is also a massive EUR/CHF long component. If we are going through a phase of positional adjustment in the FX market, then that would mean a huge amount of EUR/USD buying still to happen and a large amount of EUR/CHF selling as well (EUR20 billion in stops just below 1.2000 we heard last week). In other words, USD/CHF must be a raging sell! When I look at the weekly chart, I can’t believe I missed that sell area near the 100-week MA. Doh!
