Karen Jones, Head of Technical Analysis at Commerzbank, gives the technical outlook and the trade setup for EUR/CHF and USD/CHF.
Key Quotes
“EUR/CHF last week rallied to, tested and held below the 1.0600/70 region – this is the 61.8% retracement of the sell off.”
“It is increasingly likely that 1.0670 (61.8% retracement) will hold the topside, but only below 1.0455 will attention revert to 1.0222 then 1.0080.”
“Above 1.0670 will introduce scope to1.1003, 1.1255.”
“Trade: short 1.0612, stops 1.0675. Exit 1.0080.”
“USD/CHF last week rallied to and has stalled just ahead of the .9360 October 2014 low.”
“The Elliott wave count on the daily chart is suggesting that the .9347 high was the end of an ‘a-b-c’ correction. This suggests that we should see a slide back to the .9080/00 zone and possibly .8835/.8767 and this guards the 0.8385 January 16th low.”
“Above .9360 will allow for gains towards the .9608/78.6% retracement of the sharp sell off.”
“Current Position: Holding tiny shorts .9229”
“Recommended Trade: add .9300 – stops .9360. Exit .9000”
“Shorter term (1-3 weeks): Downside bias below .9360/.9608”
Key Quotes
“EUR/CHF last week rallied to, tested and held below the 1.0600/70 region – this is the 61.8% retracement of the sell off.”
“It is increasingly likely that 1.0670 (61.8% retracement) will hold the topside, but only below 1.0455 will attention revert to 1.0222 then 1.0080.”
“Above 1.0670 will introduce scope to1.1003, 1.1255.”
“Trade: short 1.0612, stops 1.0675. Exit 1.0080.”
“USD/CHF last week rallied to and has stalled just ahead of the .9360 October 2014 low.”
“The Elliott wave count on the daily chart is suggesting that the .9347 high was the end of an ‘a-b-c’ correction. This suggests that we should see a slide back to the .9080/00 zone and possibly .8835/.8767 and this guards the 0.8385 January 16th low.”
“Above .9360 will allow for gains towards the .9608/78.6% retracement of the sharp sell off.”
“Current Position: Holding tiny shorts .9229”
“Recommended Trade: add .9300 – stops .9360. Exit .9000”
“Shorter term (1-3 weeks): Downside bias below .9360/.9608”
