Many of the signs in the EUR/CHF market are telling me that the danger side is up. Major technical support has formed at 1.2700, UBS put out a buy recommendation at 1.2800 and the big Swiss accounts are buying in size.

USD/CHF still hasn’t quite cracked its resistance level around .9320 but I’d heard talk of large stops above .9335 and Jamie heard similar chatter in NY. If these stops go off in Asia, we can expect some big moves.

I’m not much of a proponent of buying breaks but USD/CHF today might be worth a shot; buying a break of .9335 with tightish trailing stops looks like a good risk/reward play.