EUR/CHF rose on Thursday as the “risk on” trade continued to pick up a little steam. It should be noted however that the day candle formed a shooting star. The belief that all is well in the EU is probably a little far-fetched, so a pullback wouldn’t be surprising at all. The Swiss National Bank has set a floor in on this pair at 1.20, so a pullback to that level makes sense. We like selling on a break below the Thursday low, but only down to 1.20 or so if it happens. Overall, we would prefer to buy this pair, but only when the EU can get the debt issues under control.
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