The break above 1.2190 saw increased demand for EUR/CHF from option players and it gapped quickly to 1.2230 in the usual illiquid Asian Swissy market.

Swiss players will often undo whatever happened during Asian trade, treating movements here like an anomaly, but I wouldn’t be overly confident that this will happen today as the entire market has turned a few degrees on the EUR. To say the market is very bullish would be an exaggeration, but it’s not bearish anymore that’s for sure. Plus, positioning is at best flat on the EUR so there’s a long way to go until long positions start showing up in any size.

Buying dips here definitely my preferred play.