USD/CHF: Much depends on what happens to USD/JPY
- USD/CHF is unlikely to get much of a lead from the EUR/USD, which is in sideways trading mode.
- USD/JPY is likely to provide a more solid lead and the risk there is to the downside, especially with very large trailing stops from macro-type players reported below 99.80.
- On the other hand, USD sentiment remains reasonably strong which together with SNB efforts in EUR/CHF, should support USD/CHF on any big dips.
- Technically, support doesn’t get very strong until .9450.
I sold 1/2 my long position last Friday at .9710 as I anticipated some .95/.98 range trading and so far it looks like I might be right. I will look to increase my position near .95 and reduce again near .98.