Best Financial Markets Analysis Article 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.

The FX Trader’s view

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.

Mark Sturdy
John Lewis

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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