### POV: LITTLE TO STOP USD/CHF FROM...>

DOLLAR-SWISS: ### POV: LITTLE TO STOP USD/CHF FROM RETURNING TO PARITY

-Despite USD/CHF rising for 11 of the past 12 sessions, there is very little

resistance to prevent the pair rising to, and above, parity and October highs of

Chf 1.0038. Minor resistance may be found at the December 8 high of Chf 0.9978

but this is unlikely to prove pivotal given the pair's current momentum.

-With EUR/CHF stubbornly holding below 1.20, there's very little chance of the

SNB declaring 'mission accomplished', thereby opening the door for further

USD/CHF gains that are effectively endorsed by the Swiss central bank.

-Of the 10 most profitable USD/CHF trading strategies in the past 12 months

(number one being the RSI strategy), all measures continue to suggest remaining

in their current winning long trade.

-Given the run-up in the spot price, it's unsurprising to see risk reversals

rallying further and the shorter-dated end of the risk reversals curve now sits

close to its most bearish toward the CHF since August last year (although the

small size of the CHF options market could be exaggerating this position).