USDCHF rallied half a cent yesterday as profit-taking squeezed out some weak shorts. Whilst this may continue into the European session we do not believe this will extend much further, and certainly not to the point of reversing the short-term trend. Sellers are expected to appear anywhere above the 0.9780 level - if it even makes it that far before altitude sickness creeps in – and it will take some unexpected event of sizeable proportion to set the scene for another test of parity with the Dollar. We will sell into small rallies, and build in the event of larger ones. On the current evidence a test of 90 cents is still more likely than a test of $1.00.