The FX Trader’s view – Twice before, this year, the downmove in the EUR/CHF cross has shown signs of trying to find a decent support level, but with bears then driving values lower. For a third time, now, the chart has reached a point where it is worth looking closer for signs of bear fatigue.
- WEEKLY CHART:
The latest slip here reached an earlier Fibo projection of ours around 1.4040.
The Oct-08 1.4296 low area offers first resistance on this chart. - DAILY CHART:
Note how the latest breakdown point coincides with the current 23.6% bounce level of the downmove from Mar-09 high, around 1.4340 at present. It lays not much above the Oct-08 low.
A recovery/close above this key resistance would suggest that a better recovery phase was underway, with subsequent dips then more likely to be corrective only.
Next resistance of note would be prior 1.4559/76 lows, which conveniently coincide with the 38.2% level (not shown).
Meanwhile the trend must be seen as down still.
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