The chart of the EUR/CHF cross remains weak, with previous recovery attempts only proving short-lived affairs. At present the current bounce is relatively unexciting, but we are looking at certain overhead levels that, if breached, could signal better bull interest.

The FX Specialist view

WEEKLY CHART

So far, following earlier violation of the long term bear channel base, a shorter term channel base has contained the downmove.

At this stage note potential resistance around 1.3220, the 23.6% recovery of the downmove from 1.5881 Dec-08 high. Now see Daily chart...

DAILY CHART:

The current recovery is approaching resistance offered by the 1.3225 12-Nov low, which coincides nicely with the 23.6% on the Weekly chart. This represents an important barrier, but probably more key is the somewhat higher channel top projection at 1.3545 currently.

A break above this latter could see a subsequent pullback become temporary, prior to another bull leg, with a medium term recovery unfolding.

For now, however, there is no indication that bear fatigue is setting in.

Mark Sturdy
John Lewis

Seven Days Ahead
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