EUR/CHF Springs to Life from Key 1.5000 Support
25 June 2009
In recent weeks EUR/CHF price action has been lacklustre, an earlier bull signal looking to be premature. But underwater s/term bulls, having sailed close to the wind just above 1.5000 key support for a while now, have abruptly changed tack, with a course set for higher once more.
WEEKLY CHART:
The slip back from 1.5447 Mar high has been viewed as corrective/temporary, with another bull leg expected in due course.
Price action refused to break below the key 1.5000 area.
First resistance from the falling resistance line has now been violated.
DAILY CHART:
It is interesting how well support around 1.5000 has continued to be effective – Wed’s surge finally validates our recent bullish stance.
With recent 1.5230s highs now breached our initial focus is on the 1.5447 16-Mar high and 1.5575 76.4% level.
But then note the higher 1.5881/83 (the next 76.4% level and 15-Dec high). This is a key resistance/ target area, with an equality target nearby too, 1.5875 (the 1.4576-1.5447 upleg extended from 1.5004 18-Jun low). A bull channel top projection also currently runs through here.
First support now offered by those old 1.5230s highs, while 1.5000 continues to hold the key to an unfolding bull scenario.
In the FX Trading Guide prior longs established above 1.5178 (a previous technical level) were patiently holding stops just below 1.4991 20-Feb high, targeting 1.5440 or 1.5550/75 for partial profits. Stops may then raise to below 1.5230, balances targeting the 1.5800/50 area.
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