This Pending short is only valid until the end of the week.
The swiss national bank announced they were intervening in the forex market at the beginning of the week to weaken the franc (strengthen the eurchf). It is clear frm the charts they they have been fairly active over the last month with strong buying at 1.03. They have been pretty consistent with targetting 1.05, whereupon the eurchf fades back down. This pattern looks set to repeat itself as the eurchf rises into greek event risk (this should send eurchf down if it werent for them buying).
My guess is once the snb hit their 1.05 target, the market drives the pair lower as the only buying support evaporates. The amount of euros the snb buys in these interventions is quite large and its affects spill over to all the other euro cross. Accordingly, after the euruchf hits 1.05 and begins to fade down, expect to see selling pressure on all other euro cross to accelerate, foremost will be eurusd and eurjpy.
The swiss national bank announced they were intervening in the forex market at the beginning of the week to weaken the franc (strengthen the eurchf). It is clear frm the charts they they have been fairly active over the last month with strong buying at 1.03. They have been pretty consistent with targetting 1.05, whereupon the eurchf fades back down. This pattern looks set to repeat itself as the eurchf rises into greek event risk (this should send eurchf down if it werent for them buying).
My guess is once the snb hit their 1.05 target, the market drives the pair lower as the only buying support evaporates. The amount of euros the snb buys in these interventions is quite large and its affects spill over to all the other euro cross. Accordingly, after the euruchf hits 1.05 and begins to fade down, expect to see selling pressure on all other euro cross to accelerate, foremost will be eurusd and eurjpy.