I said on Sunday that I like to set my expectations at the lower end of the scale but that really was a pile of crap wasn’t it? Those in gold shorts were the biggest winners and bloody well done to them too.
As always, we look and learn and work out what the price action is telling us.
Swiss pairs are just trading as normal so are going with the natural everyday news and events and EUR/CHF is finding itself still close to the peg. As I pointed out over the weekend, those that were long into the event now have to make a choice to hold or get out. There will be many who will be hitting any decent moves up and that’s going to keep any gains contained.
I still think we see the pair edge higher when a few positions are lightened up but the ECB on Thursday is going to weigh, as are ECB/SNB policy differences and EZ/Swiss fundamentals.
Gold has seen the profit takers coming in and we’re back up to the pivotal 1180 level having managed to nip above by $4. Again, when the profit takers have finished and if the level holds, then shorts may win out again and we’ll continue lower
Gold H4 chart 01 12 2014
So it’s back to the ‘stick ‘em in the draw and forget about ‘em’ for my EUR/CHF positions. My GBP/CHF longs are still ticking over nicely so I’ll watch the tech for those and look to see if we can get up towards the higher end of the range.
GBP/CHF Weekly chart 01 12 2014
I’m happy to nurse this one for longer as I still want to build a decent core GBP long position but don’t really want to do it against the dollar just yet.
The resulting moves from the gold vote have been disappointing but they could have been a lot worse if the vote went the other way, so we should be thankful for small mercies. The SNB has one weight of its shoulder, but plenty more still to carry. Roll on ECB Thursday.
What are you doing with CHF shorts now?
Holding
Heading for the exit on any bounce
