Yen is trading as the strongest one for today as boosted by risk aversion and falling treasury yields. Trump’s pull out from the meeting with Kim triggered some selloff in stocks. But loss is relatively limited. On the other hand, it’s the steep decline in 10 year yield, which hit as low as 2.955 so far, that looks more serious.
Swiss Franc follow as the second strongest one for today. However, even so, it’s held below yesterday’s high against all major currencies. Momentum is rather unconvincing. Having a look at EURCHF action bias table, while D action bias stays consistently downside red, 6H Action Bias is showing some hesitation.
A further look at the 6H Action Bias chart, it seems that EUR/CHF started to lose downside momentum after hitting 1.1580. Though, there is no convincing evidence that the cross is reversing yet.
Following up on our short strategy here. In the current situation, there are two choices, get out, or stay short. Considering that EUR/CHF is in deep over sold region as seen in daily RSI, we’d prefer to close short right now, with around 80 pt profit first. For those we’d like to hold on for 1.1445 target, we’d suggest to lower the stop to break even at 1.1705.
