Usd/chf

Took profit yesterday at 1.3036

Short 1.3163 sl 1.32 tp 1.3070

 

Short at 1.3170

 

What does everyone think about this pair right now? I am short, anyone else?

Take care,
-Kastro

 

Looks very overbought to me. But i think it is rather a reflection of CHF weakness as opposed to dollar strength. The CHF could emerge as the new carry-trade currency.

 

Exactly, yen borrowers switch their currency into CHF all the last 3 trading days. However in this scenario, we must see interest rates increase on yen. Then unwind yen carry trade must fasten.
1998 yen carry trade unwind experience were unpleasant. It was %20 increase in just 2~3 months. And people who borrow too much yen forgot this lesson. Let's see what happen.

 

Closed my USD/CHF short.
Short at 1.3223
Took profit at 1.3114

 

Incredible bounce today. Wont short this until 1.3220 now.

 

Not convinced by this rally, I think a lot of good news was priced in prior to payrolls. Will short on a 1.3134 break today, if it gets there.

 

WTF is up with EUR/CHF??

These model funds are insane with their drive for the extreme.