I was opining yesterday that the price action in EUR/CHF is suggesting to me that we again may be able to consider a contrarian trade. Despite very heavy option-related selling, the pair jumped 200 pips in two sessions which suggests to me a market that is very short.
Now Citi Bank market analysts have come out and said that the hedge fund market is very short this pair, and they would probably know.
Technically there is no indication yet of any bottoming formation, and USD/CHF continues to trade in a very bearish fashion close to its recent lows, but I think EUR/CHF is one trade the contrarians among us should continue to monitor closely.
