FxWirePro: Our long call in Franc under threat (call review)

Our long call in the franc is probably our longest active call which has continuously eluded target and remains far from the stop loss. However, during this period, it has never been threatened, until now. In December last year, we gave out a call,

“Sell dollar against franc at 0.985 and at rallies with stop loss around 1.033 and target around 0.9-0.895 area”

In subsequent articles, we extended that target towards 0.86 area. So far, despite showing promises during this period it always failed to gain that breakaway speed. We still expect the Franc to benefit from the Brexit, so we maintain our long call in Franc against the sterling, which is quite in the money now.

However, we expected the dollar to weaken against the franc but that hasn’t happened and currently, the US election has taken a turn where the win by the Republican Party nominee Donald Trump could be positive for the dollar.

The franc is currently trading at 0.995, so money loss is marginal (100 pips) but time loss (opportunity cost) is quite substantial. Currently, according to our calculations, our call remains active still but the bulls are clearly threatening to break above our stop loss and push the pair (USD/CHF) to as high as 1.078.

We are not issuing fresh call but remaining cautious.