EUR/CHF is in retreat this morning after running into option-related sales ahead of 1.2450 barriers.
Every man and his dog expects the Swiss authorities to raise the cap on the franc to the 1.25 or even 1.30 area later this month and the market is quite short of francs as a result.
We’re getting a pretty nasty shakeout as weak longs run for the sidelines on today’s dip.
Support on the near-term charts is pretty modest until the 1.2325/30 area. Could get ugly if the market suddenly gets a case of cold feet.
