EUR/CHF: More gains look likely, target 1.2650
I’m biased on this pair, already long with the ‘no-brainer’ trade of the year (stop-loss below the SNB intervention level). The fundamental driver here is the change in sentiment towards the EUR and the EZ debt market in particular. The messengers of doom for the single currency would seem to have gotten their timing wrong and now we are seeing the EUR even being mentioned as a ‘safe-haven’ during Abemonics and the fiscal cliff.
The 38.2% retracement of the entire collapse from 1.68 to 1.00 comes in near 1.2650 and that should be the obvious technical target once the pair gets moving again after 12 months of stagnation.