Into the North American open and USD/CHF is heading lower after bids into the 1.1925/30 area proved little support. Dealers cite the break lower in EUR/CHF as the flare that highlighted the market to the potential break-out in the Dollar pair.
As the cross broke into the 1.5800's, triggering stops in the low 1.5890's, the Dollar pair looked to extend the sell-off. Dealers here now look to the 1.1901 & 1.1903 consecutive daily lows from Friday & Monday respectively. They also talk of potential option structures at 1.1900 that could help to limit further Franc strength but either way decent stops are noted below, tipped into the 1.1890 area. An option strike in [EUR/CHF] at the NY cut at 15:00 GMT at 1.5925 was said to have weighed in EUR/CHF into the European open.
The same Swiss name that sold EUR/JPY was tipped as a seller of the cross early in European trading but bids into 1.5910 propped. However, with the Euro struggling the price has continued to ease and trading is not attempting to consolidate the break into the 1.5800's.
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