EUR/CHF rises to highest since Jan 14
The SNB yanking the floor in EUR/CHF remains the defining FX story of 2015 but the theme that has emerged over the past two months is a persistent bid in the pair.
EUR/CHF rose to 1.0969 today, breaking the August 11 high.
Last Wednesday, laid out a trade idea for EUR/CHF, suggesting to buy a dip to 1.0812 for an eventual test of the August high.
Lately, the theme in this pair has been a steady bid in European trading that ebbs in North America and Europe. The high today came shortly after Europe went home in what looks like a run on stops.
The thinking is that the SNB must be on the bid but yesterday's FX reserve data didn't show any fresh activity. Could they be using another channel?
Whatever is happening in EUR/CHF the pair has managed to brush aside a dovish ECB and the round of China/Fed-related risk aversion.
If you have a fundamental approach, it's a tough trade because there is no theme driving it other than the will of the SNB. But if you're satisfied with seeing a chart that in a steady uptrend with virtually no resistance ahead, then this is as good as it gets.
