Here we can see the SNB sidelined from aggressively intervening; the rationale behind this comes from EURCHF. The current environment is providing a strong bid for countercyclicals like JPY and CHF; as long as trade tensions remain, global growth will continue slowing and global bond yields will continue to fall.
On the technical side we have room for USDCHF to trade lower from here, falling US yields will keep the USD offered. We have broken the wedge we widely tracked here and those with a background in waves will know a 'iii' impulsive wave is cooking.
The risk to our thesis is that the SNB begins to intervene and actively begin weakening the CHF.
On the technical side we have room for USDCHF to trade lower from here, falling US yields will keep the USD offered. We have broken the wedge we widely tracked here and those with a background in waves will know a 'iii' impulsive wave is cooking.
The risk to our thesis is that the SNB begins to intervene and actively begin weakening the CHF.
Note
We may struggle to get filled here..Trade active
Note
Dollar devaluating dynamics will also apply here too; continue to work shorts for the open.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.