If you have been following our London desk $/CHF commentary, it looks like the pair may have satisfied the retracement level which we targeted before NY came in today. Our commentary posted ~7.30 am NY time yesterday morning read:

"$/CHF as steeply paid as its $ relative $/JPY. However, what goes up must come down and there may be a retracement in the works so new longs wanting to get into the action may be waiting to enter until a retracement level has been satisfied. Next retracement levels are: 1.0975 and 1.0955."

Thus far, our expectations have come to fruition (1.0975 traded). Moreover, we are eyeballing a resumption of the trend on an hourly, as it does not seem outlandish. So, with a nice risk/reward ratio at hand, there seems to be market interest in entering longs around the trendline with stops below 1.0945-50.

Should the pair convincingly breach its trend which is most likely going to be the 1.0925-30 level, longs will have the opportunity to reverse their position(s):