Dollar/Swiss is a pretty cool market sentiment guage v/s the $US. Watch it carefully when/if the buck decides to go on a run. If USDCHF fails to kick on (in other words, it merely pops around it's range), the buck won’t run very far.
As to why folks trade it? It’s a funding currency torero. Take a look at the int rate chart below. The 2 you mention in your post are favored pairs to run alongside the Swiss for sure. Essentially it’s a safe haven currency & when risk aversion rears it’s head,
some roads lead to the Swiss!
We’re playing most of these pairs & crosses via the shorter timeframes at present. If you pull up a weekly or daily (& 240m) chart of the Australasian pairs, you’ll see why the shorter term bias.
Most of the longer range bets on the popular Pound & Euro instruments are well protected. Traders are merely buying more on dips to their appropriate book percentages. If they’re not, then the aggressive players/fast money crew are definitely playing the Pound via the shorter term (aggressive) models. Hit & run opp's off the hourly s&r lines.
Similar crib sheet on the Yen crosses to be honest. There’s fast money to be made so far this quarter, & the s&r lines I’ve shown on a couple of the pairs continue to be honored.
The Euro’s near term economics makes a strong argument for continued upside, which in my view has a lot to do with the Dollar Index scraping 75.0/76.0.
If the big dogs can base out at their respective supports, then all is good. And there will be decent opportunities for 2 way trade going into years end.
Keep your radar primed to maximum intensity
