A long term trade that will 100% pay off. GuaranteedAs Swiss franc is exposed to events in Europe (high correlation to EUR) plus negative interest rate that will likely increase, ie becoming more expensive to store funds in CHF, Swiss banks will likely become less and less of a safe haven as other currencies become more attractive or even perhaps Gold. Also, don't forget with new tax and bank secrecy laws, Switzerland is becoming less and less a destination for offshore funds. In any case, Switzerland has a manufacturing sector to protect and preventing the CHF to increase further will be a job for the SNB.
On the other hands, the US economy is shaking off the winter blues and looks to increase rate in the next six months perhaps making it a destination for global funds as a carry trade.
Usd_chf
USD/CHF at a critical pointAfter rising relentlessly for 5 consecutive days, Dollar bulls faced stiff resistance today. The negative divergence in RSI has been indicative of an impending short term reversal which would push the prices back into the channel and this materialized today.
Now the price is sitting on the lower boundary of the channel and a strong support zone. If the bulls fail to put themselves together at this point, the channel will break to the downside and this will most probably commence a selling pressure that will push the price into much lower levels.