The US Dollar rose against the Swiss Franc as expected after prices put in a bullish Piercing Line candlestick pattern. The pair has finally overcome resistance in the 0.8952-56 area, marked by the 100% Fibonacci expansion and the
While a long a position appears reasonable from a risk/reward perspective, we will tactically opt to stand aside. The inverse correlation between USDCHF and EURUSD is now 0.92 on 20-day percent change studies, and we already have a short EURUSD position. Adding a long USDCHF trade here would in effect double our exposure to the same trade, so we will stand aside.