By Russell Glaser
After a technical retracement the EUR/CHF should resume its sharp downtrend.
In early February the EUR/CHF collapsed at the 200-day moving average February’s move took the pair from 1.3200 to 1.2700.
The EUR/CHF has since undergone a technical retracement of the February move, climbing as high as the 38.2% Fibonacci level from the February downtrend at 1.2900 where the pair ran into resistance and the bearish trend resumed.
A technical retracement actually reinforces a strong trending environment and signals further moves in the direction of the trend. As such, following a breach of the 1.2700 support level, we may expect the EUR/CHF to now target the 2010 low at 1.2400.
Resistance is found at yesterday’s high of 1.2900, followed by 1.2970, and the falling trend line off of the October and February highs which comes in today at 1.3100.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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