USD/CHF rose again on Wednesday as the global "risk off" trade continues. With the SNB willing to sell the Franc to keep values low, we think the USD is basically the sole "safety trade" left. Because of this, and the Fed's dicey announcement on Wednesday, we feel this pair could continue to rise. The 0.90 level could cause a reaction - but it will only be temporary at best.
EUR/CHF formed a shooting star on Wednesday as the world sold Euros. The pair has a floor in it at the 1.20 level, and we think that should be an area that the SNB will be interested in intervening if a breakdown occurs. If this happens - it should weaken the Franc, leading us back to buying the USD/CHF pair!
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