EUR/CHF: 1.2315/20 critical
EUR/CHF remains well supported in quiet afternoon trade a shorts cover amid a sharp reversal in risk appetite.
Markets have been understandably short EUR/CHF for fear of raging Greek contagion. One sided markets have a tendency to reverse, no matter how compelling the fundamental story may be and we have experienced one of those reversals in the last day, day-and-a-half…
A break above 0.8470 could help fuel a further climb in the cross.
A sustained break of range-tops at 1.2315/20 will signal a near-term bottom is in place in EUR/CHF, leading to more short-covering.
Rising US rates and equities are a big boost to this view. CHF yields are right there with the US and Japan at the lowest in the world. A big move up in US rates puts the other two low-yields are a disadvantage.