EUR/CHF jumps above 1.13, risk reversal turns positive

EUR/CHF extended the three-day winning streak in Asia to 1.1348 (highest level since SNB shock), pushing the 14-day RSI into the overbought territory. It is now most overbought since August 2015. 

One-month 25 delta risk reversal turns positive

• EUR/CHF one-month 25 delta risk reversal rose to 0.162 on Thursday. This is the first positive print since February 2016 and indicates the call options are more in demand
• The one-month ATM volatility has jumped to highest level since mid/late April 2017. 
• The spike in risk reversal along with volatility indicates the bullish trend in the EUR/CHF is here to stay. 

EUR/CHF Technical Levels

The pair was last seen trading around 1.1335. A weekly close above 1.1319 (weekly 50-MA) would open doors for a sustained rally to 1.1804 (June 2011 low). On the downside, a break below the session low of 1.1262 would expose 5-DMA currently stationed at 1.1173.