I've got an area in the Swissie in here. It isn't a structured correction (many aren't in the Swissie daily). The main issue is that the Swissie is up so high already, it's hard to keep buying the corrections of this size, even though so far it's reacted strongly to them. It really needs to come down a lot more. But, the area is clear.
So, if the DX is planning to keep moving up, then this Swissie area won't likely hold. If the DX drops, as everyone says it will here, then I'd expect the Swissie to continue this initial move up (watch for a short-lived rollover, too, to test the deeper area of the grouping). Understand the DX is not perfectly correlated with the CHF, the DX being most heavily weighted to the Euro.
The EUR/CHF is right on classic lateral support, so that would imply Euro up and/or Swissie down, if that held (it looks ripe, to me, to keep rolling off that bearish ABCD and take out all of that 'support'...). Do some other chartwork on other currencies to see what your opinion is on this one, but it is key to watch either way, as it is the 'flight to quality' currency right now, especially for Europe.
All comments are basis continuous futures contracts. Some of you FX traders may have to flip some of your charts over to follow what I'm saying.
