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4 Feb 2015
EUR and USD against CHF – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, gives the technical outlook for EUR/CHF and USD/CHF, noting that the latter’s rally has failed at the October low of 0.9360.
Key Quotes
“USD/CHF has rallied to and is failing 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.”
“Shorter term (1-3 weeks): Downside bias below .9128/.9608”
“EUR/CHF is bid near term above 1.0350, we are now extremely close to the 1.0600/70 region – this is the 61.8% retracement of the sell off.”
“It is possible that 1.0670 (61.8% retracement) will hold the initial test, but only below 1.0350 will attention revert to 1.0222, 1.0080.”
“Above 1.0670 will introduce scope to 1.1003, 1.1255.”
Key Quotes
“USD/CHF has rallied to and is failing 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.”
“Shorter term (1-3 weeks): Downside bias below .9128/.9608”
“EUR/CHF is bid near term above 1.0350, we are now extremely close to the 1.0600/70 region – this is the 61.8% retracement of the sell off.”
“It is possible that 1.0670 (61.8% retracement) will hold the initial test, but only below 1.0350 will attention revert to 1.0222, 1.0080.”
“Above 1.0670 will introduce scope to 1.1003, 1.1255.”