The EUR/CHF price action today is a real head scratcher. A two-hundred pip rally in 6 hours followed by a 100-pip retracement in about 3… Traders reported huge buying from one of the two CHF mega banks across all the CHF crosses but particularly EUR/CHF and GBP/CHF in addition to USD/CHF. A US investment house was a big buyers as well but they reportedly were quick to take profits, helping set the top in USD/CHF at 1.0278 (after first triggering the 1.0270/75 stops.
When you get big concentrated moves like that one thing springs to mind: Hedge fund blow-up. Price action like that looks like someone being taken out of a position on a margin call. Keep your eyes open for stories over the weekend or early next week of a hedge fund shutting up shop…
