Rarely people will talk about this asset although it is one of the most loved in the world. It is the currency from one of the smallest countries in the world but it is also one of the strongest currencies as well. I'm talking about Swiss Franc. Given its stability, SF has been one of few safe haven currencies for decades. Whenever there is some trouble in the world, people flee to it. In the past 5 years, SF has been largely traded in a sideway till now. In the past week, it has broken out through its upend of the sideway channel, which can be technically bullish. On the other hand, this may also signal a big correction brewing for it. Who so? Well, look at the lower part of the chart for the COT report. For the time being, traders are extremely bullish for SF, which is often a contrarian indicator. See the last time with such kind of bullishness by the traders back in 2011. SF peaked soon and crashed for about a 30% plunge thereafter. Ouch! Will we see a similar correction for SF this time? No one knows for sure but it is a real possibility.
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