Compression of volatility leads to hypervolatility

FX:EURCHF   Euro / Swiss Franc
Over the next 48 hours, we may see large moves in FX.

At present we have a compression of volatility (see currency strength chart).

This suggests that volatility will increase over the next day or so.

The trade here is:

Trade in the direction of price action and hold the trade.

A trend following strategy will work better than a mean reversion approach.
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